Question

5. the opportunity cost related to choosing a specific conclusion is determined through its

a. decisions

b. expenses

c. effort

d. profits

6. A sunk cost is a cost already _____ that the company cannot ____.

a. paid; earn

b. incurred; recover

c. refunded; return

d. paid; deliver

7. what type of cost involves an evaluation of comparative advatages and disadvantages?

a. opportunity cost

b. total cost

c. variable cost

d. fixed cost

8. growing profits to scale occurs if a certain percentage of _____ in all inputs ends in a large percentage of ______ in outputs.

a. growth; increase

b. increase; decrease

c. growth; change

d. decrease; increase

9. A production process has economies of scope when the cost of producing multiple goods is _____ the aggregate cost of producing eaxh item separately.

a. less than

b. greater than

c. equal to

Answer 1

As per rules and time constraint, only one question is allowed to answer. However, since questions are small, I am answering first three. Kindly ask other questions separately. Thank you.

Ans) 1) Opportunity cost is the cost of next best alternative that is forgone while making a decision. For eg- if one choose to run his own business and for that he left a job, then the salary of that job is the opportunity cost of starting own business.

Option a.

2) Sunk cost are the cost that are already made and cannot be recovered. For eg- the cost of machinery. Sunk cost are not considered while making future decisions as nothing can be done about it.

Option b.

3) Comparative advantage is when one can produce a good with less opportunity cost than the other. Comparative advantage is used to take trade decisions between the countries.

Option a