From 8 P

question 93

Multiple Choice

From 8 P^.M^. to 10 P^.M^.., Susan can attend a movie, study, or talk with friends. Suppose that Susan decides to go to the movie but thinks that, if she hadn't, she would otherwise have talked with friends. The opportunity cost of attending the movie is

• A) talking with friends and studying.
• B) two hours of time.
• C) studying.
• D) talking with friends.

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Definitions:

Average Total Costs

The cost of producing each unit, calculated by dividing the overall production expense by the number of units produced.

Average Variable Costs

The total variable costs of production divided by the number of units produced, highlighting how variable costs change with output levels.

Average Total Costs

The total cost of production divided by the total quantity produced, representing the average cost per unit.