Samia Has Decided That with the Two Hours in Between

question 22

Multiple Choice

Samia has decided that with the two hours in between classes she can do one of 3 things. She has ranked her choices, from highest to lowest as, (1) chat with her friends, (2) study economics or (3) take a nap. The opportunity cost of chatting with her friends is

• A) the combined value of studying economics and taking a nap.
• B) the value of studying economics, the next best use of time.
• C) the value of chatting with her friends.
• D) zero since she does not pay her friends to talk to her.

---

Definitions:

Mark-up

The amount added to the cost price of goods to cover overhead and profit, determining the selling price.

Regular Selling Price

The standard or usual price at which a product is sold to consumers, without any discounts or promotions.

Markdown

A reduction in the selling price of goods or services, typically to clear excess inventory or stimulate sales.

Selling Price

The amount of money for which a seller offers goods or services to buyers.