Use the Following Information for Questions
a Company's Unit $\begin{array}{l}\text { Variable costs }&\$75 \\\text { Fixed costs }&30\end{array}$

question 130

Multiple Choice

Use the following information for questions
A company's unit costs based on 100,000 units are: $\begin{array}{l}\text { Variable costs }&\$75 \\\text { Fixed costs }&30\end{array}$ The normal unit sales price per unit is $165. A special order from a foreign company has been received for 5,000 units at $135 a unit. In order to fulfill the order, 3,000 units of regular sales would have to be foregone.
-The opportunity cost associated with this order is

• A) $225,000.
• B) $495,000.
• C) $270,000.
• D) $405,000.

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Definitions:

Price-Discriminating Monopolist

A monopolist that charges different prices to different consumers or groups of consumers, often based on their willingness to pay.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, illustrating the sensitivity of demand to price changes.

Separate Markets

Distinct spaces or platforms where goods, services, or financial instruments are traded independently, often with little to no interaction or effect on each other.

Resold

Refers to an item being sold again after its initial purchase.