Ginger Bought a Phone That Came with a $10 Rebate

question 77

Multiple Choice

Ginger bought a phone that came with a $10 rebate. Ginger should fill out and mail in the rebate form if:

• A)the opportunity cost of the time and trouble of sending in the rebate form is less than $10.
• B)the opportunity cost of the time and trouble of sending in the rebate form is more than $10.
• C)she would have bought the phone without the rebate, and so sending in the rebate form involves no opportunity cost.
• D)Ginger's surplus from purchasing the phone was less than $10.

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Definitions:

Depreciation

An accounting method of allocating the cost of a tangible asset over its useful life.

Insurance

A contract represented by a policy in which an individual or entity receives financial protection or reimbursement against losses from an insurance company.

Schedule E

A tax form used to report income and losses from rental property, royalties, partnerships, S corporations, estates, and trusts.

Net Loss

The result when a company's or individual's expenses exceed their income.