Suppose That in an Hour Joe Can Prepare 10 Sandwiches

question 44

Multiple Choice

Suppose that in an hour Joe can prepare 10 sandwiches or 5 pizzas. The opportunity cost of Joe producing one sandwich is

• A) 2 pizzas.
• B) 1 pizza.
• C) 1/2 pizza.
• D) 5 pizzas.

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Definitions:

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including materials and labor expenses.

Cash Basis

A financial recording approach that logs income and expenditures at the time of actual receipt or payment, rather than when they are earned or owed.

Investing Activities

Transactions and events related to the acquisition and disposal of long-term assets and other investments not considered cash equivalents.

Financing Activities

Transactions that involve raising capital or repaying investors, such as issuing shares or taking out loans.