Jack, an outstanding high school baseball player, has to decide whether to sign a contract with a major league baseball organization or to go to college. If Jack is determining his opportunity costs to go to college instead, he would include
A. just the tuition and fees he would pay.
B. the tuition and fees he would pay and the costs of books he must purchase.
C. the tuition and fees he would pay, the costs of the books he must purchase plus the costs of room and board.
D. the tuition and fees he would pay, the costs of books he must purchase, the extra costs of room and board to live on campus minus the income he would receive from playing professional baseball.
E. the tuition and fees he would pay, the costs of books he must purchase, the extra costs of room and board to live on campus plus the income he would receive from playing professional baseball.
Answer: E
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When a player randomly chooses the strategy to play, with each strategy given a fixed probability of being chosen, we say that the player is using
a. a mixed strategy. b. a pure strategy. c. a dominant strategy. d. a Stackelberg strategy.
The table below shows a pizzeria's fixed cost and variable cost at different levels of output. Pizza's sell for $20 each.Number ofPizzas Per DayFixed Cost($/Day)Variable Cost($/Day)050002550015050500250755004501005008501255001,650When the pizzeria makes 125 pizzas per day, its total revenue is:
A. $2,500 B. $125 C. $1,250 D. $20
Purchasing power parity does NOT provide accurate predictions of exchange rates because
A) almost all goods and services are traded across nations. B) governments currently fix exchange rates. C) firms are unable to set prices differently across nations. D) non-traded goods account for approximately 50 percent of the value of production in an economy.
Refer to Figure 11-5. Curve G approaches curve F because
A) marginal cost is above average variable costs. B) fixed cost falls as capacity rises. C) average fixed cost falls as output rises. D) total cost falls as more and more is produced.