-Refer to the Above Table

question 143

Multiple Choice

-Refer to the above table.What is the opportunity cost of producing the third unit of capital goods?

• A) 4 units of consumer goods
• B) 5 units of consumer goods
• C) 6 units of consumer goods
• D) 7 units of consumer goods

---

Definitions:

Return on Investment

A measure of the profitability of an investment, calculated as the net income from the investment divided by the cost of the investment.

Residual Income

Income that continues to be generated after the initial effort or investment has been completed, often used in the context of investments or intellectual property.

Net Operating Income

A measure of a company's profitability from its ordinary, core operations, excluding expenses and incomes from financing and investing activities.

Investment

The allocation of resources, such as capital or time, in the expectation of generating an income or profit.