Eli is headed to his job harvesting grapes at a local vineyard. He earns $8 every hour he works there. He could also earn $7 an hour working as a bagger at the local grocery. Assuming Eli can only choose between these 2 jobs and that the benefits of each job are the same. Eli’s opportunity cost every hour he decides to work at his harvesting job is:
A. more than $7.
B. less than $7.
C. exactly $7.
D. more than $7.
C. exactly $7.
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A) most-favored-customer clauses B) reports of bids on government contracts C) meet the competition or price match D) All of the above
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a. efficient because all mutually beneficial transactions will occur. b. efficient because of the free entry assumption. c. inefficient because some mutually beneficial transactions will be foregone. d. inefficient because of the uncertainties inherent in the game.