Hutch Technology Makes Computer Monitors, Which Sell for $100 Each

question 163

Multiple Choice

Hutch Technology makes computer monitors, which sell for $100 each.What is the opportunity cost of ten monitors?

• A)$1,000.
• B)the other goods that could be produced with the resources that produce the ten monitors 
• C)the profits that Hutch earns when it sells the ten monitors 
• D)the profits that Hutch loses if it does not produce the monitors 
• E)All of the above are correct.

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Definitions:

Offshoring

The practice of shifting work previously done by domestic workers to workers located abroad.

Trading Partner

A country or organization which engages in international trade with another entity, typically exchanging goods, services, or information.

Comparative Advantage

The ability of a country or firm to produce a particular good or service at a lower opportunity cost than its trading partners, forming the basis of international trade.