The Opportunity Cost of a One-Unit Increase in an Activity

question 249

Multiple Choice

The opportunity cost of a one-unit increase in an activity

• A)decreases as you do more of it.
• B)is measured by what the person is willing to give up to get one more unit of the activity.
• C)is greater than the marginal benefit.
• D)is called rational cost.
• E)is called marginal cost.

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Definitions:

Businesses

Entities engaged in commercial, industrial, or professional activities, aiming to generate profits from the goods or services they offer.

Craft Union

Labor union whose members all have a particular skill or occupation.

Bargaining Power

The capacity of one party in a negotiation to influence the terms of an agreement or the balance of power between negotiating parties.

Supply

The total amount of a product or service available for purchase in a market.