Opportunity Cost Answers

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?

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

Producers can create their maximum combination of goods, as long as they

Look at the equation framework.

Which of the following illustrates an opportunity cost?

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

Demonstrating opportunity cost is done through production

Venya and Kari own a flower shop that specializes in custom bouquets. Wanting to expand into selling potted plants, they create a production possibility chart to assess whether the potted plants are a good idea. Study their chart:

Opportunity cost occurs because of a producer’s need to

production possibility curveproduction supply curveproduction opportunity curve

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

Assessing opportunity cost involves

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

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