Refer to the table above. If the firm decides to choose factory Far over Close, what is its marginal opportunity cost of transporting products to the market?
A) $150 B) -$200 C) $50 D) $100
D
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When an equal percentage increase in the factors of production raises real GDP by the same percentage, the production function has the characteristic known as
A) constant returns to scale. B) constant marginal productivity. C) diminishing marginal productivity. D) increasing returns to scale.
Which of the following would not lead to more conservation?
a. higher prices for a resource b. increased interest rates on bonds c. public awareness of increasing scarcity d. higher taxes on goods produced using the resource
Which of the following correctly describes the ceteris paribus assumption?
a. If we increase the price of a good, reduce consumer incomes, and lower the price of substitutes, and if quantity demanded is observed to fall, we know that the price increase caused that decline in quantity demanded. b. If the federal government increases government spending, and the Federal Reserve Bank lowers interest rates, we know that the increase in government spending caused unemployment to fall. c. If we decrease the price of a good and observe that there is an increase in the quantity demanded, holding all other factors that influence this relationship constant. d. If a company reduces its labor costs, negotiates lower materials costs from its vendors, and advertises, we know that the reduced labor costs are why profits are higher.
State and local governments receive the largest portion of their tax revenues from
a. sales taxes and income taxes. b. income taxes and property taxes. c. payroll taxes and income taxes. d. property taxes and sales taxes.