Table 3-5 -Refer to Table 3-5.The Opportunity Cost of 1 Car for of 1

question 57

Multiple Choice

Table 3-5

-Refer to Table 3-5.The opportunity cost of 1 car for the United States is

• A)4 airplanes.
• B)3 airplanes.
• C)1/3 airplane.
• D)1/4 airplane.

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Definitions:

Fixed Expenses

A rephrased definition could focus on the costs that do not vary with the level of production or business activity, which may include long-term contractual obligations and basic operational costs.

Minimum Required Rate

Refers to the lowest acceptable rate of return on investment that a business or individual expects to achieve.

Turnover

In business, turnover is the total amount of revenue generated by a company from the sale of goods or services, or it can refer to the rate at which employees leave a business and are replaced by new employees.

Minimum Required Rate

The lowest expected rate of return on an investment that makes it acceptable to an investor, considering risk and opportunity cost.