Question

Which statements demonstrate the meaning of opportunity cost for producers and consumers? Check all that apply.

If producers can only produce one item, they must decide which item to produce based on profit.
Consumers are limited by their resources, and must give up the chance to purchase one item in order to buy another.
Consumers and producers are not limited by scarcity of resources or time.
When deciding to produce or purchase one item, another opportunity must be given up.
The only factor influencing opportunity cost is personal opinion.

Answer 1

@JustSaiyan

Answer 2

We can easily eliminate A, because it excludes consumers, which the question requires. I think I'd go with "When deciding to produce or purchase one item, another opportunity must be given up.".
Opportunity cost is just losing a profitable option in exchange for another. For consumers, that'd be buying something they need, but not having the money left over for what they want.

Answer 3

Hello;

If you were to look up "Opportunity Cost"
Opportunity cost: the opportunity cost of a choice is the value of the best alternative forgone where, given limited resources, a choice needs to be made between several mutually exclusive alternatives. ~ Wikipedia.

So the (check all that apply) would be:

A) If producers can only produce one item, they must decide which item to produce based on profit.
B) Consumers are limited by their resources, and must give up the chance to purchase one item in order to buy another.
D) When deciding to produce or purchase one item, another opportunity must be given up.

Good luck!
Have a nice day!

Answer 4

Is that one the only option, it does say all that apply.

Answer 5

Oh I didn't see that part. I think I'd agree with Bammbi. For the most part.