The Opportunity Cost of Producing One More Unit of a Good

question 16

Multiple Choice

The opportunity cost of producing one more unit of a good is calculated by dividing the

• A) total quantity of that good by the total quantity of other good.
• B) total quantity of the other good by the total quantity of the good whose opportunity cost we're calculating.
• C) price of the good whose opportunity cost we are calculating by the number of units of the other good that are forgone.
• D) increase in the quantity of that good by the decrease in the quantity of other good.
• E) decrease in the quantity of the other good by the increase in the quantity of the good whose opportunity cost we're calculating.

Describe the features and implications of flood basalts.

Understand the concepts of lava flow and its interaction with the environment.

Analyze the factors contributing to the volume and intensity of volcanic eruptions.

Identify the relationship between volcanic activity and mass extinction events.

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Definitions:

Fixed Costs

Costs that do not vary with the level of output or sales in the short term, such as rent or salaries.

Sunk Costs

Costs that have already been incurred and cannot be recovered or refunded, and thus should not factor into future decision-making processes.

Fixed Costs

Fixed expenditures that are unaffected by changes in production or sales volumes, like rent, wages, and insurance costs.

Marginal Cost

The cost incurred by producing one additional unit of a good or service.