Denise Decides to Spend Three Hours Working Overtime Rather Than

question 340

Multiple Choice

Denise decides to spend three hours working overtime rather than watching a video with her friends.She earns $10 an hour.Her opportunity cost of working is

• A) the $30 she earns working.
• B) the $30 minus the enjoyment she would have received from watching the video.
• C) the enjoyment she would have received had she watched the video.
• D) nothing, since she would have received less than $30 of enjoyment from the video.

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Definitions:

Value of the Marginal Product

The additional revenue generated by employing one more unit of a factor, holding all else constant.

Marginal Product

The additional output that is produced by adding one more unit of a specific input, while holding other inputs constant.

Price Per Unit

The cost of a single unit of a product, often used to compare different product costs directly.

Moisture Farm

A fictional type of farm found in science fiction, particularly in the Star Wars universe, designed for the collection and harvesting of water from the atmosphere.