Table 22 -Refer to Table 2

question 183

Multiple Choice

Table 2.2
$$\begin{array} { | l | l | l | l | l | l | } \hline \text { Option } & \mathrm { A } & \mathrm { B } & \mathrm { C } & \mathrm { D } & \mathrm { E } \\\hline \text { Amount } & \$ 100 & \$ 50 & \$ 25 & \$ 15 & \$ 0 \\\hline\end{array}$$
-Refer to Table 2.2. You have $100 to spend and five options to choose from. What is the opportunity cost if you spent all the $100?

• A) $100
• B) $50 in terms of D
• C) $15 in terms in terms of B
• D) the total value of all the options
• E) the value of the option given up if A were not chosen

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Definitions:

Differential Cost

The difference in total cost that will result from selecting one choice over another.

Additional Cost

Expenses incurred that are above and beyond the initial forecast or budget for a project or product.

Differential Revenue

The difference in revenue generated under two different scenarios or as a result of a specific action.

Additional Cost

Expenses incurred that are over and above the originally planned or estimated costs.