If a Firm Buys a Delivery Van for $18,000 and Can

question 59

Multiple Choice

If a firm buys a delivery van for $18,000 and can resell it in 2 years for $7,500,the opportunity cost is

• A) $10,500.
• B) $7,500.
• C) $18,000.
• D) $3,750.

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Definitions:

Equitable

Fair and impartial treatment or distribution, often in the context of socio-economic policies.

Excess Supply

When the quantity supplied of a good exceeds the quantity demanded.

Excess Demand

When the quantity demanded of a good exceeds the quantity supplied.

Utilities Possibilities Frontier

A graphical representation that shows the maximum amount of two different utilities that can be achieved with a given set of resources.