Recall the Application About the Opportunity Cost of an Entrepreneur

question 146

Multiple Choice

Recall the Application about the opportunity cost of an entrepreneur to answer the following question(s) .
-Recall the Application.All of the following would be included as an opportunity cost of quitting your other job and driving for Uber EXCEPT

• A) the salary forgone from your other job.
• B) the paid sick leave and vacation days that were benefits from your other job.
• C) the subsidized health insurance offered from your other job.
• D) the cost of the gasoline you need to purchase for your Uber job.

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Definitions:

Diminishing Returns

An axiom indicating that beyond a certain level, additional investments in a given domain will not yield proportionally higher returns unless other variables are adjusted.

Variable Costs

Costs that vary directly with the level of production or output, such as materials and labor directly involved in production.

Production

The process of creating goods and services from various inputs such as labor, technology, and raw materials.

Variable Costs

Outlays that shift directly in line with the magnitude of output or production.