Samantha Is a Recent Fashion Graduate

question 123

Multiple Choice

Samantha is a recent fashion graduate.She started her own apparel store with an investment of $300,000.In the first year she made a profit of $60,000.If she had taken up a job as a fashion editor for a magazine, she would have earned $50,000 as salary per year.Also, she could have invested her capital, $300,000, in treasury bonds and earned an interest of $12,000.Thus, the amount $62,000 ($50,000 + $12,000) would be Samantha's _____.

• A) social cost
• B) break-even price
• C) reservation price
• D) opportunity cost

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Definitions:

Exponential Distribution

A continuous probability distribution used to model the time between events in a Poisson point process, characterized by a constant mean rate or rate parameter.

Upper Limit

The upper limit refers to the highest value or boundary that a certain data range, interval, or measurement can reach.

Random Variable

A variable whose outcomes are determined by a random phenomenon, used in probability and statistical analysis.

Normal Distribution

A harmonized distribution of probability about the mean, portraying that near-mean occurrences are more common than those far from the mean.