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:

Liquidation

The process of converting company assets into cash to pay off debts, often preceding the dissolution of the company.

Trustee

A person or firm that holds and administers property or assets for the benefit of a third party.

Assets

Resources owned by a company or individual with economic value.

Bankruptcy Law

The area of law dealing with situations where individuals or entities cannot repay their debts and seek relief through legal proceedings.