Mr Sweet Opened a Candy Store

question 40

Multiple Choice

Mr. Sweet opened a candy store. He rented a building for $30,000 a year. During the first year of operation, Sweet paid $40,000 to his employees, $10,000 for utilities, and $20,000 for goods he bought from other firms. His total revenue was $135,000. Sweet's best alternative to running this candy store is to work for Wal-Mart as a sales associate for $15,000 a year. What is Sweet's total opportunity cost?

• A) $15,000
• B) $100,000
• C) $135,000
• D) $115,000

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Definitions:

Preparedness

A psychological term referring to a predisposition to learn certain types of behaviors or concepts more easily than others, often due to evolutionary pressures.

Instinctive Drift

The tendency of an animal to revert to instinctive behaviors that interfere with a conditioned response.

Instinctive Learning

The process by which innate behaviors are triggered by environmental stimuli without the need for previous experience or learning.

Conceptualization

The process of defining and clarifying ideas or concepts to make them understandable.