Mikhail and Stefan Are Both Artists Who Can Create Sculptures

question 112

Multiple Choice

Mikhail and Stefan are both artists who can create sculptures or paintings each day.The following table describes their maximum outputs per day.Use this table to answer the following questions.

-What is Stefan's opportunity cost of a sculpture?

• A) 1/2 painting
• B) 1/3 painting
• C) 3 paintings
• D) 1/3 sculpture
• E) 3/5 sculpture

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Definitions:

Fully Depreciated

A state where a fixed asset has reached the end of its useful life and its book value is reduced to scrap value.

Profit Margin

A measure of a company's profitability, calculated by dividing net income by total revenues. It shows how much profit each dollar of sales generates.

Net Income

The total profit or earnings of a company after all expenses, taxes, and costs have been subtracted from total revenue.