The exam on Blackboard will randomly select 2 or 3 questions from each pool for each topic covered on an exam. b. real costs. Your email address will not be published. C)the monetary costs of an activity. If I don’t loan my brother the $10,000, it will stay in my bank account for the year, where it will earn 2% interest. Opportunity cost exists because a. technology is fixed at any point in time b. the law of comparative advantage is working c. resources are scarce but wants are unlimited d. the value of lost opportunities varies from person to person e. efficiency is measured by the monetary cost of an activity ANS: C 2. B)the highest-valued alternative forgone. The opportunity cost of going to the movie is: 4. C) we must give up something to get something else. Summary: The opportunity cost of any decision is what is given up as a result of that decision. A ticket costs $10, and the next-best alternative use of your time would be to go to dinner with a friend. c) III only. The cost of options not taken is the opportunity cost. a. Sunk cost b. 35) 36)In the above table, the firm PLEASE COMMENT BELOW WITH CORRECT ANSWER AND ITS DETAIL EXPLANATION. 43) 44)The opportunity cost of any action is A)the time required but not the monetary cost. B) sellers are unwilling to give up their product without a price. B)total revenue equals total opportunity cost. Web Links. A. the cost incurred in the past before we make a decision about what to do in the future. Managerial economics is ... Firms do not continue to grow without limit because of. 35-D Opportunity cost is the benefit of next best alternative forgone. III. A. mathematical models B. physical models diagrammatic Suppose that you are willing to pay $50 to see a movie on Saturday night. ... Q. Choice is necessary because of limited wants. Economists use the term . 1.1 What Is Economics, and Why Is It Important? B)total revenue equals total opportunity cost. A) how choices are made under conditions of scarcity. According to marginal analysis, optimal decision-making involves: a) Taking actions whenever the marginal benefit is positive. D)the accounting cost minus the marginal cost. Test your understanding of Opportunity cost concepts with Study.com's quick multiple choice quizzes. Operations Research Online Quiz Following quiz provides Multiple Choice Questions (MCQs) related to OS.You will have to read all the given answers and click on view answer option. SURVEY . 3. Microeconomics Topic 1: “Explain the concept of opportunity cost and explain why accounting profits and economic profits are not the same.” Reference: Gregory Mankiw’s Principles of Microeconomics, 2nd edition, Chapter 1 (p. 3-6) and Chapter 13 (p. 270-2). What do your sunk costs equal? II. Opportunity cost accounts for alternative uses of resources such as time and money. As production of a given good increases, opportunity cost increases because of resource variability. 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