Your firm owns an old truck that is used to make local deliveries. The truck is fully depreciated and only costs $1.20 per hour to operate, but you could rent it to another firm for $15.00 per hour
What is the opportunity cost of operating this truck in your business? A) $1.20 per hour
B) $15.00 per hour
C) $16.20 per hour
D) Less than $1.20 per hour
B
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When economists speak of preferences as influencing demand, they are referring to
A) directly observable changes in prices and income. B) an individual's attitudes toward goods and services. C) the excess of wants over the available supplies. D) the availability of a good to all income classes.
A bank which must hold 100 percent reserves opens in an economy that had no banks and a currency of $150 . If customers deposit $50 into the bank, what is the value of the money supply?
a. $50 b. $100 c. $150 d. $200
In a market system, the most dangerous types of bankruptcies involve
A. industrial monopolies. B. multinational firms. C. employment agencies. D. financial institutions.
The Marginal Product of Labor is
A) the change in total product resulting from an extra unit of labor, holding other factors constant. B) the ratio of output to the number of workers used to produce that output. C) the amount of output that can be produced by a given amount of labor. D) equal to the marginal product of labor when the average product is increasing.