An Example of Opportunity Cost

question 37

Multiple Choice

An example of opportunity cost

• A)is sweets given up by a person who would never eat them even if he or she could.
• B)for a professor of economics is the pleasure that he or she derives from teaching economics.
• C)is the Chinese food that you gave up when you chose to eat Italian food.
• D)is the tuition you pay to attend college.
• E)is the price paid for a ticket when you go to the movies.

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Definitions:

Break-even Analysis

A calculation to determine the point at which revenue received equals the costs associated with receiving the revenue, marking the no-profit, no-loss situation.

Price Sensitivity

The degree to which the price of a product affects consumers' purchasing decisions, often influenced by their perception of value and disposable income.

Price Sensitive

Describes consumers or markets that are highly responsive to changes in the price of goods or services.

Underpricing

Charging someone less than they are willing to pay.