Economics 2281 · O Level · Firms and production

Firms and production — practice question

A man works from home making table cloths. Each day, he works for 6 hours and produces 15 table cloths per hour. He sells each one for $\$10$. He then chooses to work for just 4 hours each day. What conclusion can be drawn from the information above?

  • AThe lost profit would be $\$300$.
  • BThe lost revenue would be $\$60$.
  • CThe daily opportunity cost would be 30 table cloths.
  • DThe daily opportunity cost would be $\$50$.

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