When Computing the Opportunity Cost of Attending a Basketball Game

question 49

Multiple Choice

When computing the opportunity cost of attending a basketball game you should include

• A)the price you pay for the ticket and the value of your time.
• B)the price you pay for the ticket,but not the value of your time.
• C)the value of your time,but not the price you pay for the ticket.
• D)neither the price of the ticket nor the value of your time.

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Definitions:

Aluminum Cans

Containers made from aluminum used for packaging beverages and food items.

Long-run Average Total Cost

A metric reflecting the per-unit cost of producing a certain output level, considering all variable and fixed costs over time.

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.

Constant Returns to Scale

A situation in production where increasing all inputs by a certain proportion results in output increasing by the same proportion.