Which of the following most accurately reflects the opportunity cost to a pharmacist who drives a taxi?
a. the dollars spent on his previously acquired education in pharmacy
b. the revenue derived from operating the cab
c. zero if the pharmacist received his education on a scholarship that paid his full tuition
d. the value of the pharmacist's time in its highest valued use other than driving a cab
D
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A monopoly is a firm that is the only seller of a good or service that does not have
A) a close complement. B) a close substitute. C) a patent. D) a barrier to entry.
Health clubs typically experience an increase in one-year memberships in January, but many new customers cancel their memberships before the end of the year. Which of the following is the best explanation for this behavior?
A) Some people fail to treat their membership fees as sunk costs. B) Some people are overly optimistic about their future behavior. C) Some members receive utility from activities they believe are popular. D) Some health club members suffer minor injuries that prevent them from working out.
Which of the following best defines the situation where one firm's research yields knowledge that is used by society as a whole?
a. social cost b. opportunity cost of technology c. internalization of an externality d. technology spillover
Refer to the diagram. If a firm produces output Q 1 at a unit cost of c, then the:
A. firm is operating in a purely competitive industry.
B. firm is maximizing profits.
C. marginal product per dollar's worth of each resource employed is not the same.
D. firm is fulfilling the least-cost rule in employing resources.