Bill Has $10 That He Can Spend on a Superman

question 4

Multiple Choice

Bill has $10 that he can spend on a Superman action figure, a Batman graphic novel or an X-Men T-shirt. Bill decides to buy the action figure, even though the graphic novel was a close second choice. What is the opportunity cost of buying the action figure?

• A) The amount he spends: $10.
• B) Nothing, since he got his preferred choice.
• C) The Batman graphic novel.
• D) The X-Men T-shirt.

---

Definitions:

Rule of Reason

A legal doctrine used to evaluate business practices based on their actual impact on competition, considering both their pro-competitive and anti-competitive effects.

Sherman Act

The Sherman Act is a foundational antitrust law in the United States, passed in 1890, that prohibits monopolistic practices and promotes competition.

Antitrust Laws

Regulations established to promote competition and prevent monopolies by restricting unfair business practices and mergers.

Federal Trade Commission

A U.S. federal agency responsible for enforcing laws against deceptive or unfair business practices.