The Opportunity Cost of Producing One More Unit of a Good

question 49

Multiple Choice

The opportunity cost of producing one more unit of a good is calculated by dividing the

• A) increase in the quantity of that good by the decrease in the quantity of other good.
• B) total quantity of that good by the total quantity of other good.
• C) decrease in the quantity of the other good by the increase in the quantity of the good whose opportunity cost we're calculating.
• D) total quantity of the other good by the total quantity of the good whose opportunity cost we're calculating.
• E) price of the good whose opportunity cost we are calculating by the number of units of the other good that are forgone.

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Definitions:

Number of Channels

Refers to the distinct paths or routes through which a company distributes its products or services to customers.

Number of Phases

refers to the distinct stages in a project, process, or lifecycle, often marked by key milestones or transitions.

Population Size

The total number of members in a group that is being studied or for which data is being collected.

M/D/1

A model in queueing theory representing a system with a single server, Poisson arrivals, and deterministic service times.