Related to the Economics in Practice on Page 25: How

question 189

Multiple Choice

Related to the Economics in Practice on page 25: How did the introduction of the microwave oven in 1960 affect the market for frozen food?

• A) It encouraged people to leave the work force by making cooking easier and less time-consuming.
• B) It reduced the opportunity cost of eating frozen food by decreasing the amount of time required to prepare frozen meals.
• C) It increased the financial cost of alternative methods of food preparation, such as conventional ovens.
• D) It made frozen foods more appealing by increasing the variety of meals that could be frozen and reheated.

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Definitions:

Marginal Cost

The financial increase incurred by adding one more unit to the production of a product or service.

Short Run

A time period in economics during which at least one input (e.g., plant size, machinery) is fixed, affecting the firm's capacity to adjust production levels.

Long Run

A period in which all factors of production and costs are variable, allowing firms and the economy to adjust to changes fully.

Sales

encompasses the transactions of selling goods or services to consumers in exchange for money or other compensations.