Use the Following Scenario to Answer the Next Four Questions

question 114

Multiple Choice

Use the following scenario to answer the next four questions:
Esther and Albert produce hamburgers and hot dogs. Esther can produce six hamburgers per hour or four hot dogs per hour. Albert can produce three hamburgers per hour or one hot dog per hour.
-Based on the scenario,Albert's opportunity cost of one hot dog is:

• A) 3 hamburgers.
• B) 1 1/2 hamburgers.
• C) 6 hamburgers.
• D) 4 hamburgers.
• E) 8 hamburgers.

---

Definitions:

Joint Cost

A cost that is incurred in the production of multiple goods or services where the cost cannot be attributed to individual products easily.

Physical Quantities

Measures of inventory that are based on physical count or volume, such as units, liters, or kilograms.

Investment Center

A division or unit within an organization that is responsible for generating its own revenue and controlling its costs, allowing it to be evaluated as a standalone entity for performance assessment.

Investment Turnover

A measure of a company's efficiency in using its assets to generate sales or revenue; calculated as sales divided by the average investment in assets.