Hutch Technology Makes Computer Monitors, Which Sell for $500 Each

question 54

Multiple Choice

Hutch Technology makes computer monitors, which sell for $500 each. What is the opportunity cost of producing ten monitors?

• A) $5,000
• 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:

Distribution Center

A warehouse or specialized facility where products are stored and organized for the purpose of redistributing to retailers, wholesalers, or directly to consumers.

Wholesaler

A type of business that buys goods in large quantities directly from manufacturers or distributors and resells them to retailers or other businesses.

Retail Distribution Center

A specialized facility that handles the storage and distribution of goods to retail stores or directly to customers, often involving inventory management, order fulfillment, and transportation logistics.

Manufacturer's Representative

An individual or business that sells a manufacturer's products to wholesale and retail customers, but does not take ownership of the goods.