Scenario: a Firm Wants to Set Up a Factory

question 94

Multiple Choice

Scenario: A firm wants to set up a factory. It has four different options. The rent of the factory in each of the four different locations and the time taken to transport the product from each location to the market is shown in the table below. The opportunity cost of time is $10 per hour.

-Refer to the scenario above.If the firm chooses factory Far over Close,what is its marginal opportunity cost of transporting products to the market?

• A) $100
• B) −$200
• C) $50
• D) $150

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Definitions:

Happiness

Happiness is a state of well-being characterized by emotions ranging from contentment to intense joy.

Congruent

Being in harmony or agreement; when things align or match in a consistent way.

Psychology Career

A professional path that involves studying mental functions and behaviors, and often includes roles such as research, counseling, and clinical practice.

Thorndike

An American psychologist who developed the law of effect, which states that behaviors followed by pleasing consequences tend to be repeated, while those followed by unpleasant consequences are less likely to be repeated.