The Statement That "There Is No Such Thing as a Free

question 97

Multiple Choice

The statement that "there is no such thing as a free lunch" means:

• A) there are no tradeoffs between economic goals.
• B) any production requires the use of scarce resources, and thus the sacrifice of another alternative.
• C) choices need not be made in rational behavior.
• D) scarcity only exists in poor societies.

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Definitions:

Mixed Costs

Expenses that contain both fixed and variable components, changing in total with the level of activity but also containing a constant component.

Variable Cost

Variable costs are expenses that vary directly with the level of production or sales volume, such as materials and labor costs.

High-Low Data

A method used in various analyses that involves observing the highest and lowest data points to assess trends or calculate variables.

Units Produced

The total quantity of units manufactured by a company during a specific period.