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

question 147

Multiple Choice

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

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

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Definitions:

Revenue

The overall sum of revenue produced from selling goods or providing services tied to a business's core activities.

Double-Entry System

An accounting method that records each transaction twice, once as a debit in one account and once as a credit in another, ensuring the accounting equation remains balanced.

Revenues

Revenue accrued from sales of goods or services that are fundamental to an organization's core operations.

Expenses

The outflow of money or other resources incurred in the process of generating revenue.