The Opportunity Cost of a Good Is the Same as Its

question 154

Multiple Choice

The opportunity cost of a good is the same as its

• A) money price.
• B) relative price.
• C) price index.
• D) none of the above.

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Definitions:

Marginal Revenue

This refers to the additional income generated from the sale of one more unit of a good or service.

Average Cost

the total cost of production divided by the number of units produced, used to evaluate the efficiency of production processes.

Producing Units

Departments or entities within an organization responsible for the creation of goods or provision of services.

Marginal Revenue (MR)

The increase in revenue that results from the sale of one additional unit of a product or service.