Mr Sweet Opened a Candy Store

question 40

Multiple Choice

Mr. Sweet opened a candy store. He rented a building for $30,000 a year. During the first year of operation, Sweet paid $40,000 to his employees, $10,000 for utilities, and $20,000 for goods he bought from other firms. His total revenue was $135,000. Sweet's best alternative to running this candy store is to work for Wal-Mart as a sales associate for $15,000 a year. What is Sweet's total opportunity cost?

• A) $15,000
• B) $100,000
• C) $135,000
• D) $115,000

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Definitions:

Level Of Measurement

The classification of data based on the nature and the mathematical properties of the data values, such as nominal, ordinal, interval, and ratio scales.

Nominal

Refers to categorical data that can be categorized but not ranked or ordered in a meaningful way.

Level Of Measurement

The scale or type of data that determines the kind of statistical analysis that can be used.

Frequency Distribution

A representation, often in graphical form, showing the number of observations within each given interval.