Here Are Three Things You Could Do If You Do

question 34

Multiple Choice

Here are three things you could do if you do not attend your economics class: watch television with some friends (you value this at $25) ,read a good book (you value this at $17) ,or go to work (you could earn $20 during the economics class) .The opportunity cost of going to your economics class is

• A) $20,because this is the only alternative of the three where you would actually receive a monetary payment.
• B) $17,because this is the lowest valued alternative forfeited.
• C) $25,because this is the highest valued alternative forfeited.
• D) $62,because this is the total dollar sum of the three forfeited alternatives.

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Definitions:

TFC

Total Fixed Cost, which refers to the sum of all costs that do not change with the level of output produced by a firm.

Techniques of Production

The methods and processes used in the transformation of inputs into outputs by firms in the production of goods and services.

Price of Output

The amount of money that a producer receives for selling one unit of a product or service in the market.

Price of Inputs

The cost of resources used in the production of goods and services, including materials, labor, and overheads.