📚 Learning Guide
Opportunity Cost Analysis
medium

The opportunity cost of producing one more phone is always the same, regardless of how many phones are already being produced.

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Learning Path
Learning Path

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A

True

B

False

Understanding the Answer

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Answer

The opportunity cost of producing one more phone is not always the same; it can change based on how many phones are already being made. Opportunity cost refers to what you give up when you choose one option over another. For example, if a factory is making 10 phones and decides to make one more, it might have to reduce the production of another item, like tablets. However, if the factory is already making 100 phones, the resources needed for one more phone might come from reducing the number of other phones made instead. This means that the opportunity cost can vary depending on the current production levels and the resources available.

Detailed Explanation

The opportunity cost changes based on how many phones are made. Other options are incorrect because Some might think that the cost stays the same no matter what.

Key Concepts

Opportunity Cost
Resource Allocation
Trade-offs
Topic

Opportunity Cost Analysis

Difficulty

medium level question

Cognitive Level

understand

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