If a company moves from producing 100 units of good A and 50 units of good B to producing 70 units of good A and 60 units of good B, the opportunity cost is:
a) 70 units of good A.
b) 100 units of good A.
c) 10 units of good B.
d) 30 units of good A.
Answer: d) 30 units of good A.
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In the short-run, a perfectly competitive firm can earn normal profits or above normal profit but it cannot incur losses
a. True b. False Indicate whether the statement is true or false
A monopolist will always enlarge its revenues by selling more output
a. True. b. False.
Entrepreneurship
What will be an ideal response?
If the supply price of land is zero, including costs of transporting goods produced on the land to the market, then
a. positive rents are paid for the acres furthest from the market b. there are no rent-yielding acres c. the demand for land must be infinitely high d. population growth must be high e. landowners will reap higher rents