If you own a building and you decide to use that building to open a restaurant,
A. there are no sunk costs involved in this decision.
B. there is no opportunity cost of using this building for a restaurant because you own it.
C. the only cost relevant to this decision is the price you paid for the building.
D. there is an opportunity cost of using this building for a restaurant because it could have been used in other ways.
D. there is an opportunity cost of using this building for a restaurant because it could have been used in other ways.
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Fears of an impending civil war in Baltonia have reduced the confidence of potential investors. Assuming all else equal, which of the following is likely to happen in this case?
A) The consumption expenditure in Baltonia will rise. B) The equilibrium real wage in Baltonia will rise. C) The supply of labor in Baltonia will fall. D) The demand for labor in Baltonia will fall.
How were the initial members of EMU chosen? How will new members be admitted? What is the structure of the complex of financial and political institutions that govern economic policy in the euro zone?
What will be an ideal response?
Assume that the exchange rate changed from (a) $2/€ to (b) $1.125/€. What are the corresponding exchange rates for the U.S. dollar?
a. (a) €2/$ and (b) €1.125/$. b. (a) €1.125/$ and (b) €2/$. c. (a) €0.50/$ and (b) €0.89/$. d. There is not enough information provided to answer this question.
The data points on a supply curve come from
A) survey analysis. B) the same place from which we get the data points on a demand curve. C) the supply schedule. D) companies' annual reports.