Table 2-4 Table 2-4 Shows the Output Per Day of Day

question 69

Multiple Choice

Table 2-4
Table 2-4 shows the output per day of two gardeners,George and Jack.They can either devote their time to mowing lawns or cultivating gardens.
-Refer to Table 2-4.What is George's opportunity cost of mowing a lawn?

• A)half a garden cultivated
• B)two lawns mowed
• C)two-thirds of a garden cultivated.
• D)one and a half lawns mowed

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Definitions:

Variable Costs

Expenses that vary in relation to the amount of activity or the quantity of output produced.

Fixed Costs

Expenses that remain constant regardless of production or sales volume, including rent, salaries, and insurance costs.

Operating Income

An indication of a company's profitability from its core business operations, excluding income and expenses from unusual, non-operational activities.

Contribution Margin

The amount by which a product's sales price exceeds its variable costs, contributing to covering fixed costs and generating profit.