When the Opportunity Cost of Lost Revenue Is Relatively High

question 1

Multiple Choice

When the opportunity cost of lost revenue is relatively high, _____ become(s) relatively more attractive.

• A)layoffs
• B)back orders
• C)excess capacity
• D)disaggregation
• E)minimal inventory

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Definitions:

Interest Rate

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage.

Principle

The original amount of money invested or loaned, before interest is added.

Graduate

A person who has successfully completed a course of study or training, especially one provided by a college or university.

Miserly Friend

Refers to a person who is exceedingly frugal to the point of being stingy or tightfisted with money.