From a firm's viewpoint, opportunity cost is the
A) best alternative use customers can find for the firm's output.
B) cost the firm must pay for the factors of production it employs to attract them from their best alternative use.
C) accounting cost of resources.
D) price a firm can charge for its output.
E) cost of acquiring the opportunity to sell to its customers.
B
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A sharp increase in the price of beef that causes consumers to switch to chicken is predicted to ________ the real wage and ________ employment of unskilled workers in a poultry processing plant.
A. increase; increase B. increase; not change C. increase; decrease D. decrease; decrease
Under Federal Trade Commission merger guidelines, an industry with a Herfindahl-Hirschman index (HHI) of 800 points is considered
A) competitive. B) moderately concentrated. C) concentrated. D) a monopoly.
According to the principle of diminishing returns to labor, if the amount of capital and other inputs are held constant, employing additional workers:
A. increases output at a constant rate. B. increases output at an increasing rate. C. decreases output at an increasing rate D. increases output at a decreasing rate.
Which of the following is not a leading indicator for economic activity?
A. Orders for new equipment. B. Natural disasters. C. The level of inventories. D. Building permits.