AP Micro M1.5 Cost-benefit analysis Vocab test

A unit of utility

The out-of-pocket cost of a decision.

Consumers, producers and others who behave rationally and make optimal decisions.

The cost that has already been incurred and is nonrecoverable.

The process of comparing the total costs and total benefits of an option.

A measure of personal satisfaction.

The cost of a decision paid with time and missed opportunities.

The difference between the total money received and the total cost.

Comparison of the costs and benefits of one additional or one less unit.