"If I Didn't Have a Date Tonight, I Would Save

question 131

Multiple Choice

"If I didn't have a date tonight, I would save $10 and spend the evening playing tennis." The opportunity cost of the date is

• A) the other things that could be purchased with the $10.
• B) the other things that could be purchased with the $10 plus the forgone value of a night of tennis.
• C) dependent upon how pleasant a time one has on the date.
• D) the forgone value of a night of tennis.

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Definitions:

Market Supply Curve

A graphical representation showing the relationship between the price of a good and the total output of the industry at that price.

Average Variable Costs

The cost that varies with the level of output, divided by the quantity of output produced, reflecting the variable expenses per unit.

Economic Profit

The difference between total revenue and the total costs of production, including opportunity costs not just explicit costs.

Long Run Equilibrium

A state in which all factors of production and costs are variable, and firms no longer have an incentive to enter or exit an industry, leading to a stable market condition.