Suppose a gardener produces both tomatoes and squash in his garden. If he must give up 8 bushels of squash to get 5 bushels of tomatoes, then his opportunity cost of 1 bushel of tomatoes is
a. 0.63 bushels of squash.
b. 1.6 bushels of squash.
c. 3 bushels of squash.
d. 5 bushels of squash.
b
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The development of a new good or a new process for making a good is called
A) an innovation. B) a service. C) a factor of production. D) an invention.
What was the Federal Trade Commission (FTC), established in 1914, created to enforce?
(a) U.S. foreign trade (b) The maritime code (c) The Interstate Commerce Act (d) The antitrust laws
Assuming pure competition, which of the following are equivalents?
A. MRP L /P L = MRP C /P C and P x = 1/MC. B. MRP L /P L = MRP C /P C and P x = AVC. C. P x = MC and MRP L /P L = MRP C /P C = 1. D. P x = MC and MP L /P L = MP C /P C
Suppose the firm's cost of capital increases. This would not change the capital budgeting choices the firm makes if it uses
A. Payback B. NPV analysis C. IRR analysis