The Opportunity Cost of a Resource Tells a Manager

question 54

Multiple Choice

The opportunity cost of a resource tells a manager:

• A) the amount by which one output must be reduced when another output is increased for a given set of resources
• B) the amount by which the fixed cost of one product will decline with a given set of resources
• C) the amount of output possible for all given sets of resources available
• D) none of the other three answers

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Definitions:

Nonpossessory Interest

A right or interest in a property that does not include the right to possess the property itself, such as an easement or right-of-way.

Tenancy in Common

A type of joint ownership of property where each owner holds an undivided interest and rights to the property, but without survivorship rights.

Tenants by the Entirety

A form of joint property ownership available to married couples, where each owns the entire property and rights of survivorship are included.

Earnest Money

A deposit made to a seller indicating the buyer's good faith, seriousness, and intent to complete the purchase transaction.