Babe Ruth Could Produce Two Home Runs in a Week

question 86

Multiple Choice

Babe Ruth could produce two home runs in a week of play as a fielder or one win in a week of play as a pitcher. What was his opportunity cost for a week of pitching?

• A) one win
• B) two wins
• C) one home run
• D) two home runs

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Definitions:

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in a linear fashion.

Delivery Equipment

Assets such as trucks and vans used by a company for the purpose of delivering products to customers.

Office Equipment

Tangible items used in an office environment for performing business operations, such as computers, printers, and furniture.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset since it was acquired.