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The United States, at the Point Where It Is Currently

question 94

Essay

The United States, at the point where it is currently producing, must give up the production of 300 motorcycles to produce 15 additional SUVs with the same resources.Which of the following is the opportunity cost of producing 100 motorcycles?
A.1 SUV
B.5 SUVs
C.7 SUVs
D.15 SUVs


Definitions:

Marginal Cost

Marginal cost is the change in total cost that arises when the quantity produced is incremented by one unit.

Revenue

Revenue is the total income generated from normal business operations, like selling goods or services, before any expenses are deducted.

Economic Profits

The difference between the total revenue earned by a firm and the total costs of production, including opportunity costs.

Market Demand Curve

A graphical representation showing the total demand of all consumers in a market for a particular product at different prices.

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