Scenario: a Firm Wants to Set Up a Factory

question 19

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.What is the marginal opportunity cost of transporting products to the market if the firm chooses factory Far over factory Very Far?

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

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Definitions:

Fish Extinctions

The complete disappearance of fish species from the planet, often as a result of human activities, environmental changes, or natural events.

Marine Systems

Complex networks of oceanic and coastal habitats, organisms, and their interactions, instrumental in maintaining the planet's climate and biodiversity.

Fish Species

Distinct groups within the aquatic vertebrate class Fish, characterized by their own specific features and genetic makeup.

Benthic

Related to the bottom of a sea or lake or to the organisms that live on or in the bottom sediments.