As Residents of Developing Countries Increase Their Chocolate Consumption, the Increased

question 319

Multiple Choice

As residents of developing countries increase their chocolate consumption, the increased production of cocoa results in

• A) increased opportunity cost of cocoa production.
• B) decreased opportunity cost of cocoa production.
• C) no change in production of other goods and services.
• D) increased production of other goods and services.

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Definitions:

Sunk Cost

Any cost that has already been incurred and that cannot be changed by any decision made now or in the future.

Obsolete Desk Calculators

Desk calculators that are no longer considered efficient or useful due to advancements in technology or changes in user needs.

Inventory

The total amount of goods a company has in stock, including raw materials, work-in-process, and finished goods.

Variable Costs

Expenses that change in proportion to the activity of a business, such as materials and labor costs.