Use the Following Scenario to Answer the Next Questions

question 88

Multiple Choice

Use the following scenario to answer the next questions:
Natasha can produce either 5,000 pounds of cheese or 20 houses per year. Jameson can produce either 5,000 pounds of cheese or 10 houses per year.
-Natasha's opportunity cost of producing one house is ______pound(s) of cheese.

• A) 1/250 of a
• B) 1/20 of a
• C) 20
• D) 250
• E) 500

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Definitions:

Hurdle Rate

The minimum rate of return on a project or investment required by a manager or investor.

Rate of Return

The gain or loss of an investment over a specified period, expressed as a percentage of the investment's cost.

Return on Investment

A performance measure used to evaluate the efficiency or profitability of an investment, calculated as the net profit divided by the initial cost.

Annual Revenue

The total income generated by a business, organization, or individual within a fiscal year from its operations.