Fred and Ann Both Decide to See the Same Movie

question 126

Multiple Choice

Fred and Ann both decide to see the same movie when they are given free tickets to it.We know that

• A)both bear the same opportunity cost since they are doing the same thing.
• B)the cost of going to the movie is greater for the one who had more choices to do other things.
• C)both bear an opportunity cost since they could have done other things instead of see the movie.
• D)neither bear an opportunity cost because the tickets were free.

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Definitions:

Other Expenses

Costs not directly related to production or operations, such as administrative and marketing expenses.

Containers Refurbished

The process of cleaning, repairing, and restoring used containers to a condition suitable for safe and efficient reuse.

Spending Variance

The difference between the actual amount of money spent and the budgeted or planned amount in a given period.

Budgeting

The process of creating a plan to spend your money, outlining proposed incomes and expenditures for a future period.