Hutch Technology Makes Computer Monitors, Which Sell for $100 Each

question 163

Multiple Choice

Hutch Technology makes computer monitors, which sell for $100 each.What is the opportunity cost of ten monitors?

• A)$1,000.
• B)the other goods that could be produced with the resources that produce the ten monitors 
• C)the profits that Hutch earns when it sells the ten monitors 
• D)the profits that Hutch loses if it does not produce the monitors 
• E)All of the above are correct.

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Definitions:

Property Plant

Long-term tangible assets used in the operation of a business but not expected to be consumed or converted into cash in the normal course of business.

Foreign Currency

Currency used in a country other than one's own, representing the medium of exchange for international transactions.

Exchange Differences

Financial discrepancies that arise from converting transactions made in foreign currencies into the reporting currency.

Revaluation

The process of adjusting the book value of a capital asset to reflect its current market value.