ECONOMICS
OPPORTUNITY COST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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You have $20. Right now you are deciding between buying an organic grass fed burger and fries with a milkshake for $19 or a ticket to the IMAX action movie for $18. Is it possible to choose both, given these options?
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Yes, because oppourtunity costs give you more oppourtunity
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No, because you do not have enough money for both activities
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Yes, because your teacher will give you more money to do both
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Yes, because movies and burgers are always free
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Explanation:
Detailed explanation-1: -The correct answer is b. Benefits foregone by not choosing an alternative course of action.
Detailed explanation-2: -The correct answer is a. A computer company produces fewer laptops to meet tablet demand. Opportunity cost defines the benefit obtained by having a commodity after forgoing some other commodity. In the problem statement, the computer company incurs an opportunity cost of laptops for tablets.
Detailed explanation-3: -Opportunity cost refers to the value of the next best alternative.
Detailed explanation-4: -One method for studying opportunity cost is to think in terms of: risk and ability.
There is 1 question to complete.