The opportunity cost of any factor of production is
A) its accounting cost.
B) the benefit forgone by not using it in its worst alternative.
C) the money actually paid to the factors of production.
D) its explicit cost.
E) the benefit forgone by not using it in its best alternative.
Ans: E) the benefit forgone by not using it in its best alternative.
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Core competency implies:
A) a firm produces one single product. B) a firm hires only one type of employee. C) a firm focuses on only one type of customer. D) a firm does one thing better than it does other things. E) a firm must be competent at its core - its executive level.
The ability to produce at a lower opportunity cost than someone else is referred to as: a. absolute advantage
b. comparative advantage. c. absolute superiority. d. competitive disadvantage.
What are the characteristics of an oligopoly?
Which of the following is NOT an assumption of the classical model?
A. People are motivated by self-interest. B. Government spending is necessary to achieve economic stability. C. Wages and prices are flexible. D. Absence of money illusion.