The rate of return that households expect on their savings is determined by:

To calculate the opportunity cost per unit, you divide the decrease in the quantity of the forgone item by the

A) decrease in the quantity of the other item. B) increase in the quantity of the other item obtained. C) price of the item obtained. D) price of the item forgone. E) price of the item obtained and then multiply by the price of the item forgone.

Which of the following goods is given in the textbook as an example of a good whose price is subject to volume penalties?

A. Electricity B. Pizza C. Beer D. Yogurt