If You Must Make a Choice About Consuming Two Apples

question 35

Multiple Choice

If you must make a choice about consuming two apples, three oranges, or one candy bar, the opportunity cost of the candy bar is:

• A)two apples.
• B)three oranges.
• C)two apples and three oranges.
• D)two apples or three oranges, whichever you prefer more.
• E)equal to the difference in the prices of the three options.

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Definitions:

Monthly Production Volume

The total quantity of goods produced by a business in a month, often analyzed to gauge efficiency, plan inventory needs, or assess production capacity.

Total Cost

The sum of all expenses incurred in the production of goods or services, including both fixed and variable costs.

Mixed Cost

Expenses that have both fixed and variable components, changing partially in response to an alteration in business activity level.

High-low Method

A method applied within cost accounting that helps in determining fixed and variable expenses by examining the highest and lowest activity levels.