Hutch Technology Makes Computer Monitors, Which Sell for $100 Each

question 202

Multiple Choice

Hutch Technology makes computer monitors, which sell for $100 each.What is the opportunity cost of 10 monitors?

• A)$1,000
• B)The other goods that could be produced with the resources that produce the 10 monitors
• C)The profits that Hutch earns when 10 monitors are sold
• D)The lost profits that Hutch if the monitors are not produced
• E)All of the responses are correct.

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Definitions:

Pay

The compensation or wage given to an employee in exchange for their work or service.

Instrument

A document formalizing a legal or financial agreement, such as a bond, share, or promissory note.

Holder in Due Course

A party who has acquired a negotiable instrument in good faith and for consideration, and thus is protected against certain defenses if payment on the instrument is refused.

Negotiable Note

A financial instrument containing a promise to pay a specific amount of money, either on demand or at a set time, to the holder or assignee.