Which of the Following Terms Describes the Next Best Alternative

question 46

Multiple Choice

Which of the following terms describes the next best alternative that must be sacrificed as a result of making a particular choice?

• A)Microeconomics.
• B)Opportunity cost.
• C)Macroeconomics.
• D)The law of increasing costs.
• E)Scarcity.

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Definitions:

Minimum Return

The lowest expected or required return on an investment over a specified period.

Long Run

A period of time in which all factors of production and costs are variable, allowing for all adjustments to take place in the analysis of economic conditions.

Average Variable Cost

The total variable costs of production divided by the quantity of output produced.

Marginal Revenue

The additional revenue that a firm receives from selling one more unit of a good or service.