A Firm Has a General-Purpose Machine, Which Has a Book

question 67

Multiple Choice

A firm has a general-purpose machine, which has a book value of $300,000 and is sold for
$500,000 in the market. If the tax rate is 35%, what is the opportunity cost of using the machine in a project?

• A) $500,000
• B) $430,000
• C) $300,000
• D) None of the above

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Definitions:

Voluntary Behavior

Actions undertaken by an individual that are done by choice, without external compulsion.

Shaping Successive Approximations

A behavior modification technique that reinforces behaviors progressively closer to the desired behavior, used effectively in both humans and animals.

Skinner Box

An experimental apparatus developed by B.F. Skinner for studying behavioral conditioning in animals, particularly with reinforcements.

Shaping

A method of training or teaching by which successive approximations toward a desired behavior are reinforced.