A local fast-food restaurant mails out coupons for a free sandwich to every home in the community. The opportunity cost of redeeming the sandwich for someone who was on a diet might be:
A. not eating because you are on a "get fit for the summer" diet plan.
B. lost wages due to spending time in a long line instead of eating a Healthy Choice meal in your office.
C. eating a "Tough Man's Burger," which is one of your favorite fast food options.
D. There was no opportunity cost for the sandwich because it was free.
Answer: A
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The schedules in the table give the marginal social benefit and marginal social cost of a DVD. If the number of DVD produced is cut to 2 a week, then the ________
A) minimum supply-price of the second DVD is $18 B) price is $18 a DVD C) opportunity cost of the second DVD is $22 D) value of the second DVD is $20
Voluntary exchange
A) will eliminate scarcity. B) is a nonprice rationing device. C) is trading so that the consumer and producers are better off. D) never involves transactions costs.