When Ophelia Voluntarily Buys a Cup of Tea from Tim

question 133

Multiple Choice

When Ophelia voluntarily buys a cup of tea from Tim Horton's for $1.25,

• A) the seller's opportunity costs must be less than $1.25.
• B) the seller's marginal benefits from $1.25 must be less than from the tea.
• C) Ophelia's marginal benefits must be less than $1.25.
• D) she is not making a smart choice.
• E) Ophelia's opportunity costs must be greater than $1.25.

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Definitions:

Start-Up Costs

The initial expenses incurred during the process of establishing a business, including research, borrowing costs, licensing, and initial marketing.

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, leading to a decrease in per unit cost with an increase in production.

Least Cost

The process of minimizing expenses involved in producing a good or service while maintaining its quality and efficiency.