Match Each Definition That Follows with the Term (A-E) It

question 50

Multiple Choice

Match each definition that follows with the term (a-e) it defines.
-Revenue forgone from an alternative use of an asset

• A)Opportunity cost
• B)Sunk cost
• C)Theory of constraints
• D)Differential analysis
• E)Product cost distortion

---

Definitions:

Market Demand Curve

A graphical representation that illustrates the total quantity of a particular good or service that consumers in a market are willing to buy at various prices.

Minimum Average Total Cost

The lowest point on the average total cost curve, representing the most efficient scale of production for minimizing costs per unit.

Average Total Cost

The total cost of production divided by the quantity of output produced, indicating the cost per unit of output.