Refer to the Accompanying Figure

question 65

Multiple Choice

Refer to the accompanying figure. The opportunity cost of making an additional salad:

• A)remains constant regardless of how many salads are made.
• B)increases as the number of salads increases.
• C)decreases as the number of pizzas decreases.
• D)decreases as the number of salads increases.

---

Definitions:

Broker

An individual or firm that acts as an intermediary between buyers and sellers, usually charging a commission for their services.

Agent

An individual or entity authorized to act on behalf of another (the principal) in dealings with third parties.

Working Capital Management

The process of managing short-term assets and liabilities to ensure a company has sufficient liquidity to run its operations smoothly.

Capital Budgeting

The process of planning and managing a company's long-term investments in projects and assets to maximize value and ensure financial sustainability.