You Are Trying to Decide in Which of the Three

question 18

Multiple Choice

You are trying to decide in which of the three companies you should invest. Refer to the following
Payoff Table.
If the market rises in the next year, which of the following statements are correct?
i. The Opportunity Loss for Company A is $200.
ii. The Opportunity Loss for Company B is $0.
iii. The Opportunity Loss for Company C is $400.

• A) (i), (ii), and (iii) are all correct statements.
• B) (i) is a correct statement but not (ii) or (iii).
• C) (ii) is a correct statement but not (i) or (iii).
• D) (i) and (ii) are correct statements but not (iii).
• E) (i), (ii), and (iii) are all false statements.

---

Definitions:

Long-Run Cost

The total cost of production when all factors of production can be varied, typically associated with the planning of long-term business strategies.

Production Functions

Production functions describe how a firm transforms inputs into outputs, relating the quantity of factor input to the quantity of output produced.

Industry Supply Curve

A graphical representation showing the relationship between the price of a good and the total output provided by all firms in the industry.

Chirimollas

A tropical fruit, also known as custard apple, valued for its sweet taste and nutritional properties, but unknown or incorrect as a key-term might imply "cherimoyas."