From 8 PM to 10 P

question 16

Multiple Choice

From 8 P.M. to 10 P.M., Susan can attend a movie, study, or talk with friends. Suppose that Susan decides to go to the movie but thinks that, if she hadn't, she would otherwise have talked with friends. The opportunity cost of attending the movie is

• A) talking with friends and studying.
• B) studying.
• C) talking with friends.
• D) two hours of time.

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Definitions:

Profit Margin

A financial metric indicating the percentage of revenue that exceeds the costs of goods sold, essentially measuring how much out of every dollar of sales a company actually keeps in earnings.

Invested Assets

Resources or capital put into financial instruments, land, buildings, or other assets with the expectation of generating income or profit.

Operating Income

Income generated from a company's core business operations, excluding any profits or losses from investments and interest or taxes.

Transfer Price

The price charged for goods or services transferred between departments or divisions within the same company or between affiliated entities.