Suppose You Own a Courier Service and You Use Two

question 115

Multiple Choice

Suppose you own a courier service and you use two types of delivery vehicles - Model A,which costs $30 000 to purchase,and Model B,which costs $50 000 to purchase.You have a budget of $300 000 for the purchase of new vehicles.What is the opportunity cost of one Model B vehicle?

• A)0
• B)3/5ths of a Model A vehicle
• C)5/3rds of a Model A vehicle
• D)5 Model A vehicles
• E)3 Model A vehicles

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Definitions:

Butanal

An aldehyde with the formula C4H8O, characterized by having a carbonyl group at the end of a four-carbon chain.

Butanoic Acid

A saturated four-carbon fatty acid with a carboxylic acid functional group; known for its unpleasant smell.

Major Organic

Refers to the primary or most abundant organic compound formed as a product in a chemical reaction.

Methyl Ester

Organic compounds formed by replacing the hydrogen of an acid by a methyl group, with the general structure RCOOCH3.