Suppose Jon Stewart of the "Daily Show" Makes an Annual

question 382

Multiple Choice

Suppose Jon Stewart of the "Daily Show" makes an annual income of $1,000,000. If he quit his television job and went into producing he could make $400,000 per year. Jon Stewart's opportunity cost as a producer is

• A) $1,400,000.
• B) 1,000,000.
• C) $400,000.
• D) $600,000.

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Definitions:

Long-Run Supply Curve

A graphical representation showing the relationship between price and the quantity supplied over time, when all inputs can be adjusted.

Competitive Market

A market structure characterized by many buyers and sellers, resulting in competition that influences prices and product offerings.

Limited Quantities

Refers to the restricted availability of goods or resources, which can affect pricing, demand, and supply conditions.

Opportunity Costs

The penalty of bypassing the next most advantageous option when a decision is made.