A recent study found that it was cheaper to buy a chicken dinner from Kentucky Fried Chicken than it was to prepare it at home. The researcher included all costs including the imputed value of time involved to prepare the meal at home. This study illustrates the
a. value of marginal analysis.
b. law of increasing costs.
c. difference between real costs and money costs.
d. cost disease of the service sector.
c
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Which statement is true?
A. Entrepreneurial ability is in short supply in the U.S. B. Land, labor and capital may be considered passive resources. C. The concept of opportunity cost is irrelevant when there is scarcity. D. None of these statements are true.
Alpha Corp . and Beta Corp . are the only firms in an industry. It is found that Alpha loses its entire market share to Beta when Beta lowers its price. What is the optimum pricing strategy for Alpha?
What will be an ideal response?
Economists Cade Massey and Richard Thaler analyzed whether teams in the National Football League distributed salaries efficiently. Massey and Thaler found that
A) both rookie players and veteran players are paid less than the value of their marginal products because of the lack of competition among teams. B) veteran players who sign as free agents are paid more relative to their marginal products than rookie players selected in the first round of the draft. C) rookies are paid salaries greater than their marginal products; veteran players are paid salaries less than their marginal products. D) the first few players selected in first round of the NFL draft are paid much higher salaries relative to their marginal products than players drafted later in the first round.
In the late 2000s, which of the following was the primary source of external financing for small to medium-size firms?
A) mortgages B) bank loans other than mortgages C) trade credit D) other loans