Sierra Has the Following Information to Evaluate-Her Current Salary of $45,000

question 54

Multiple Choice

Sierra has the following information to evaluate-her current salary of $45,000 versus total revenues of $62,000 and expenses of $57,000 from starting a new business.How much is the opportunity cost associated with starting the new business?

• A)$62,000
• B)$5,000
• C)$57,000
• D)$45,000

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Definitions:

Monopoly

An exclusive control over the supply of a product or service in a particular market, often eliminating or restricting competition.

ATC Schedule

A table or graph that shows the average total costs for producing different levels of output.

Consumer Surplus

Consumer surplus is the difference between what consumers are willing to pay for a good or service and what they actually pay.

Perfect Price Discrimination

A market scenario where a seller charges each buyer their maximum willingness to pay, resulting in the seller capturing all available consumer surplus.