Opportunity Cost Answers

One method for studying opportunity cost is to think in terms of

Look at the equation framework.

Which of the following illustrates an opportunity cost?

Read the scenario. Samira is a freshman basketball player who hopes to go to college on a basketball scholarship. She is offered the chance to play on her school’s varsity basketball team, which plays in tournaments during holiday breaks. Samira usually spends her breaks working at the local hardware store. After careful consideration, Samira decides to stay on the freshman basketball team and keep working over breaks. The fact that Samira may miss out on a scholarship opportunity by staying on the freshman team illustrates

On a production possibility curve, data points that fall outside of the curve represent

production possibility curveproduction supply curveproduction opportunity curve

Demonstrating opportunity cost is done through production

Opportunity cost occurs because of a producer’s need to

opportunity costsrevenueprofitresource costs

How does a production possibility chart assist in outlining opportunity cost?

Rescooperate Ice Cream Shop recently analyzed their books. They found that in the past year, they made $100,000 selling ice cream and spent $75,000 on supplies and factory space. The remaining $25,000 represents

Which of the following are examples of limited resources on the part of consumers?

Ricardo works part time at a local computer store. One day, his manager approaches him about moving from cashier to floor supervisor. Ricardo is excited because the promotion comes with a raise; however, the extra work hours would take away from time with his friends and family. In the end, he decides to take the promotion.What is Ricardo’s opportunity cost?

Opportunity cost occurs because of a producer’s need to

Assessing opportunity cost involves