Opportunity Cost Is

question 25

Multiple Choice

Opportunity cost is

• A) the variable cost a firm incurs by increasing output 1 unit.
• B) the value of the best alternative use of a firm's resources.
• C) the output opportunities a firm gains when average fixed costs decline.
• D) another name for explicit costs.
• E) the difference between fixed cost and variable cost.

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Definitions:

Degree 3

A polynomial of degree 3 is a polynomial that has the highest exponent of its variable(s) as 3.

Sum

The result obtained by adding two or more numbers.

Scientific Notation

A way of expressing numbers that are too large or too small to be conveniently written in decimal form, using powers of ten.

Quadratic Polynomial

A polynomial of degree two, typically written in the form ax^2 + bx + c where a, b, and c are constants.