The Opportunity Cost of Producing One More Unit of a Good

question 49

Multiple Choice

The opportunity cost of producing one more unit of a good is calculated by dividing the

• A) increase in the quantity of that good by the decrease in the quantity of other good.
• B) total quantity of that good by the total quantity of other good.
• C) decrease in the quantity of the other good by the increase in the quantity of the good whose opportunity cost we're calculating.
• D) total quantity of the other good by the total quantity of the good whose opportunity cost we're calculating.
• E) price of the good whose opportunity cost we are calculating by the number of units of the other good that are forgone.

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Definitions:

Key Partners

Strategic relationships and alliances with other businesses or individuals that contribute to a company's success.

Distributors

Companies or individuals that facilitate the movement of products from manufacturers to the marketplace or consumers.

Value Proposition

The unique value a product or service provides to customers, distinguishing it from competitors.

Business Model Canvas

A visual framework for strategic management, aimed at creating or detailing current business models by highlighting a company’s value offering, organizational structure, customer base, and financial strategy.