Scenario 14

question 19

Multiple Choice

Scenario 14.1 A worker in Firm A earns an income of $5,000 per month.He has been offered a job in Firm B where he will be paid a salary of $7,000 per month.
-Refer to Scenario 14.1.If the worker joins Firm B,his opportunity cost is:

• A)$7,000.
• B)$5,000.
• C)$2,000.
• D)more than $5,000 but less than $7,000.
• E)less than $2,000.

---

Definitions:

Consumer Needs

The essential goods and services that customers consider necessary or desirable in their everyday lives.

Competitive Market System

A market structure characterized by many buyers and sellers, free entry and exit, and products that are similar, fostering competition.

Successful Innovators

Individuals or organizations that effectively introduce new ideas, goods, services, or processes, leading to market success.

Economic Profits

The gap between a business's complete earnings and all its expenses, covering both overt and hidden costs.