Hutch Technology Makes Computer Monitors, Which Sell for $500 Each

question 54

Multiple Choice

Hutch Technology makes computer monitors, which sell for $500 each. What is the opportunity cost of producing ten monitors?

• A) $5,000
• B) the other goods that could be produced with the resources that produce the ten monitors
• C) the profits that Hutch earns when it sells the ten monitors
• D) the profits that Hutch loses if it does not produce the monitors
• E) All of the above are correct.

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Definitions:

Income Equality

A situation in which earnings are distributed evenly across members of a society, reducing income disparities.

Growing Income Inequality

The increasing gap in the distribution of income and wealth among individuals or households within a community or country.

Widening Wage Gap

The increasing difference in compensation between high-income and low-income workers.

Skilled Workers

Employees who have special training, knowledge, or ability in their specific field or occupation, usually acquired through education or long-term experience.