The Opportunity Cost of Good a in Terms of Good

question 144

Multiple Choice

The opportunity cost of good A in terms of good B is equal to the

• A)money price of good A minus the money price of good B.
• B)money price of good B minus the money price of good A.
• C)ratio of the money price of good A to the money price of good B.
• D)ratio of the money price of good B to the money price of good A.
• E)money price of good A plus the money price of good B.

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Definitions:

Direct Materials

Raw materials that are directly used in the manufacturing of a product and are easily traceable to that product.

Client-Visits

The number of times clients or customers physically visit a business or service location, often used as a metric in service-based industries.

Personnel Expenses

Costs related to the compensation of employees, including wages, benefits, and taxes.

Planning Budget

A budget created for a particular level of activity; it helps management to plan for upcoming expenses and revenues based on projected operations.