-How Would You Define "Many" When We Say There Are

question 326

Multiple Choice

-How would you define "many" when we say there are "many firms in an industry"?

• A)More than 5
• B)More than 10
• C)More than 25
• D)More than 100
• E)So many that no one firm has any influence on price.

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Definitions:

Opportunity Cost

Waiving prospective gains from various alternatives by settling on one option.

Foregone Alternative

The option or course of action that is given up when another is chosen; closely related to the concept of opportunity cost.

Opportunity Cost

The charge of rejecting the following prime opportunity in the process of decision-making.

Sunk Costs

Sunk costs are expenditures that have already been incurred and cannot be recovered, and should not affect future investment decisions or operations.