Which of the Following Would Be Categorized as an Opportunity

question 187

Multiple Choice

Which of the following would be categorized as an opportunity cost? a. not being able to spend your $10,000 savings if you sink the money in your business
B. the cost of purchasing supplies for your house-cleaning business
C. the cost of purchasing auto insurance for your dry-cleaning delivery business

• A) a only
• B) a and c only
• C) b and c only
• D) all of the above

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Definitions:

Purely Competitive Seller

A market participant that operates in a perfectly competitive market, where no single seller can influence prices or market conditions.

Diminishing Marginal Productivity

A principle in economics stating that as additional units of a variable input are added to a fixed input, the marginal product of the variable input eventually decreases.

MRP

Marginal revenue product, the additional revenue generated by employing one more unit of a resource.

Wage Rate

The standard amount of pay given to employees per unit of time, which may vary based on industry, occupation, and experience.