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:

Economically Injurious Falsehood

A false statement made about a business or product that causes financial harm, also known as trade libel.

Disparagement of Property

Making false and damaging statements about someone's property or business practices, which may result in financial loss.

Legally Recognized Injury

A wrong or damage suffered by an individual which is identified and acknowledged under the law for purposes of compensation or remedy.

Negligent Act

An action or failure to act in a situation where a person has a duty to exercise reasonable care, resulting in harm to another party.