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

question 39

Multiple Choice

"If I didn't have a date tonight, I could save $40 and spend this evening out with my friends." The opportunity cost of the date is

• A) $40.
• B) $40 plus the cost of forgoing a night out with friends.
• C) dependent on how pleasant a time one has on the date.
• D) the cost of forgoing a night with friends.

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Definitions:

Marginal Revenue Product

Marginal Revenue Product is the additional revenue gained from employing one more unit of a resource, crucial for determining how much of a resource to employ.

Wage Rate

The amount of compensation paid to an employee by an employer in exchange for performing specific tasks within a given period.

Perfectly Competitive Firm

A company operating in a market where there are many sellers and buyers, the product is identical across suppliers, and there are no barriers to entering the market, leading to no control over prices.

Marginal Revenue Product

The additional revenue gained by employing one more unit of a factor of production.