Use the scenario below to answer the question. A factory manager must decide to build chairs or cabinets with the lumber the company owns. The worker at the factory can build 100 chairs, or they can build 200 cabinets. Which is the opportunity cost if the factory manager has the workers build 100 chairs? The cost to pay the workers to build the 200 cabinets The additional cost to distribute the 100 chairs The sales tax owed on the sale of the 100 chairs The potential profit on the sale of the 200 cabinets
Use the scenario below to answer the question. A factory manager must decide to build chairs or cabinets with the lumber the company owns. The worker at the factory can build 100 chairs, or they can build 200 cabinets. Which is the opportunity cost if the factory manager has the workers build 100 chairs? The cost to pay the workers to build the 200 cabinets The additional cost to distribute the 100 chairs The sales tax owed on the sale of the 100 chairs The potential profit on the sale of the 200 cabinets
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Use the scenario below to answer the question.
A factory manager must decide to build chairs or cabinets with the lumber the company owns. The worker at the factory can build 100 chairs, or they can build 200 cabinets.
Which is the
- The cost to pay the workers to build the 200 cabinets
- The additional cost to distribute the 100 chairs
- The sales tax owed on the sale of the 100 chairs
- The potential profit on the sale of the 200 cabinets
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