Opportunity Costs Exist Because

question 1

Multiple Choice

Opportunity costs exist because

• A) there is a price attached to virtually every good or service
• B) technology is not fixed in the economy
• C) people have different tastes and preferences
• D) limited resources cannot satisfy all of the wants in society
• E) the production possibilities frontier is bowed in with respect to the origin

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Definitions:

Flexible Technology

Systems or equipment that can easily adapt to changes in production volume, design, or process, enhancing a company's ability to respond to market changes.

Facility Costs

Expenses associated with the physical means through which a company operates, such as rent, utilities, and maintenance of buildings and equipment.

Tariffs

Taxes or duties to be paid on a particular class of imports or exports, affecting the price and demand for goods.

Logistics

The management of the flow of goods, services, and information between the point of origin and the point of consumption to meet customer or corporate requirements.