Opportunity cost can be best defined as
A. all sunk costs.
B. the value of the best alternative given up when making a choice.
C. the explicit cost of an activity.
D. the cost of making one additional unit.
B. the value of the best alternative given up when making a choice.
You might also like to view...
A tax on consumption for those who are nonsavers
A. is equivalent to a tax on income. B. causes income gains to increase dramatically. C. would be preferred to a tax on wealth. D. makes it difficult to tell what the result for the nonsavers would be.
Which of the following characteristics of a competitive market make auction sites such as eBay so popular?
A) There is freedom of entry and exit. B) There are very low transaction costs. C) There are only one or two sellers. D) Buyers and sellers have complete information.
In a labor negotiation, a mediator
a. represents the union rank-and-file members b. represents the management side c. is an impartial observer d. can call a strike e. can force both sides to agree to a contract
If Shoffner Inc., a publicly traded corporation, has a share price of $125, revenues of $15.35 per share, and profits of $5.25 per share, what is the P/E ratio for Shoffner Inc. shares?
A. 0.12. B. 0.04. C. 8.14. D. 23.81.