The Opportunity Cost of a Purchase Is

question 42

Multiple Choice

The opportunity cost of a purchase is

• A) zero if the item is what someone wants most.
• B) always equal to the selling price of what someone purchased.
• C) always greater for people who are out of work than for people who are working.
• D) the alternative good or service that one sacrifices because a different good was purchased.
• E) the lowest possible price.

---

Definitions:

Marginal Cost

The increment in overall expenses due to the output of one more unit of a product or service.

Marginal Revenue

The augmented income received from selling an extra unit of a good or service.

Total Revenue Curve

The total revenue curve graphically represents the relationship between total revenue gained by a business and the quantity of a product sold, showing how revenue changes as sales volume varies.

Slope

A measure of the steepness or inclination of a line, representing the rate at which variables change relative to each other.