Denise Decides to Spend Three Hours Working Overtime Rather Than

question 340

Multiple Choice

Denise decides to spend three hours working overtime rather than watching a video with her friends.She earns $10 an hour.Her opportunity cost of working is

• A) the $30 she earns working.
• B) the $30 minus the enjoyment she would have received from watching the video.
• C) the enjoyment she would have received had she watched the video.
• D) nothing, since she would have received less than $30 of enjoyment from the video.

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Definitions:

Units Sold

The total number of units of a product sold within a specific period, reflecting the volume of business activity.

Variable Cost

An expense that fluctuates with the level of output or sales volume, such as the cost of raw materials used in a product's manufacture.

Fixed Cost

Costs that do not vary with the volume of production or sales, remaining constant over a specified range of activity and period of time, such as rent or salaries.

Units Sold

The total number of a product that a company sells within a particular period, indicating the volume of business activity.