Why would an economist argue that tuition is not the largest cost of attending a state university?
What will be an ideal response?
The largest cost of attending a university is the opportunity cost of the student's time. This could be measured by the foregone income that could have been earned if the student worked instead of attending classes.
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Economies of scale and limited demand can form a natural barrier to entry that can create a natural oligopoly
Indicate whether the statement is true or false
Consider two upward sloping income-utility curves with income on the horizontal axis. The steeper curve represents risk preferences that are more:
A) risk averse. B) risk loving. C) loss averting. D) We cannot answer this question without more information about the shapes of the curves.
Different banks:
A. all offer loans at the same interest rate. B. may offer loans at different rates. C. are mandated to follow the Fed's set interest rate. D. never offer loans at exactly the same rates.
Each firm in an oligopoly market knows that any change in its product quality, price, output, or advertising policy may prompt a reaction from its rivals. Each firm also may react if another firm alters any of these features
Indicate whether the statement is true or false