Which of the following is the best example of opportunity cost?
A) a company's expenditures on a training program for its employees
B) the rate of return on a company's investment
C) the amount of money that a company can earn by depositing excess funds in a money market fund
D) the profit that a company forgoes when it decides to drop one product line in favor of another one
D
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In the long-run equilibrium, an increase in the quantity of capital leads to
A) an increase in the equilibrium price level and an increase in equilibrium real GDP. B) a decrease in the equilibrium price level and an increase in equilibrium real GDP. C) a decrease in the equilibrium price level, but no change in equilibrium real GDP. D) no change in the equilibrium price level, but an increase in equilibrium real GDP.
Government intervention always reduces monopoly deadweight loss
a. True b. False Indicate whether the statement is true or false
If aggregate quantity supplied exceeds aggregate quantity demanded, we can expect an unplanned
A. depletion of inventories, causing firms to raise prices. B. depletion of inventories, causing firms to lower prices. C. accumulation of inventories, causing firms to raise prices. D. accumulation of inventories, causing firms to lower prices.
Which of the following is characteristic of a purely competitive seller's demand curve?
A. Price and marginal revenue are equal at all levels of output. B. Average revenue is less than price. C. Its elasticity coefficient is 1 at all levels of output. D. It is the same as the market demand curve.