Trinh Quits His $80,000-A-Year Job to Become a Full-Time Volunteer

question 93

Multiple Choice

Trinh quits his $80,000-a-year job to become a full-time volunteer at a museum.What is the opportunity cost of his decision?

• A)0 since he will no longer be earning a salary
• B)depends on the "going rate" of museum employees
• C)at least $80,000
• D)the value he attributes to the joy of working at a museum

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Definitions:

Total Profit Maximization

The process of adjusting output and pricing to achieve the highest possible profit in a business operation.

MB = MC

The optimal condition in economics where the marginal benefit (MB) of an action is equal to its marginal cost (MC), leading to efficient allocation of resources.

MB < MC

A condition where the marginal benefit of producing an additional unit is less than the marginal cost of producing that unit.

Decision Maker

An individual or group responsible for making choices or judgments, particularly in a professional or organizational context.