Which of the Following Is NOT an Example of an Opportunity

question 452

Multiple Choice

Which of the following is NOT an example of an opportunity cost?

• A) Because Mary is now being paid a higher wage, she can afford to buy a new car even though she is moving into a bigger apartment.
• B) By choosing to attend college, Jean was not able to continue working as an electrician; as a result, she gave up more than $85,000 in earnings while she was in college.
• C) Because David used all of his vacation time to paint his house, he was unable to visit the Caribbean last year.
• D) By spending Thursday night studying for an economics exam, a student was unable to complete a homework assignment for calculus class.

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Definitions:

ATC

Average Total Cost, which is calculated by dividing total costs by the quantity of output produced.

MC

Marginal Cost, the increase in total cost that arises from an extra unit of production.

MR

Marginal Revenue, the additional income generated from selling one more unit of a product or service.

Perfectly Elastic

Perfectly elastic refers to a situation where the quantity demanded or supplied responds infinitely to changes in price.