-The Opportunity Cost of Moving from Point a to Point

question 95

Multiple Choice

-The opportunity cost of moving from point a to point b in the above figure is

• A) zero.
• B) 3/2 pairs of socks per sweater.
• C) 3 pairs of socks.
• D) 2 sweaters.

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Definitions:

Residual Income

The amount of income that an individual or company retains after accounting for all operating expenses and cost of capital.

Operating Assets

Assets that are used by a company in its daily operations to generate revenue, excluding any investment or non-operational assets.

Net Operating Income

The profit derived from a company's regular business activities, excluding deductions of interest and taxes.

Return On Investment

A performance measure used to evaluate the efficiency or profitability of an investment or compare the efficiency of a number of different investments.