During the Next Hour John Can Choose One of the Following

question 178

Multiple Choice

During the next hour John can choose one of the following three activities: playing basketball,watching television,or reading a book.The opportunity cost of reading a book

• A)depends on how much the book cost when it was purchased.
• B)is the value of playing basketball if John prefers that to watching television.
• C)is the value of playing basketball and the value of watching television.
• D)depends on how much John enjoys the book.
• E)is equal to the marginal benefit from reading the book.

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Definitions:

Direct Labor Hours

The total time workers spend producing a product or providing a service, directly tied to the production process.

Contribution Margin Ratio

A financial metric that shows what percentage of sales revenue is available to cover fixed costs and generate profit after variable costs have been paid.

Variable Costs

Costs that change in proportion to the level of activity or volume of goods produced by a business.

Sales Decrease

A drop in the volume or amount of products or services sold by a company within a specific period.