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Gas Country Is Considering Selling Premium Gasoline

Question 253

Multiple Choice

Gas Country is considering selling premium gasoline. It already sells regular for $1.22/litre and would sell premium gasoline for $1.28/litre. The cost to further refine the regular gas into premium would be $.02/litre. A cost that would not be considered in this decision would be


A) the extra revenue generated by selling premium.
B) the cost of refining the regular gasoline.
C) the cost of further processing the regular gas into premium gas.
D) the opportunity cost of the regular gasoline.

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