Many theaters sell empty seats at a deep discount just before show time. What economic concept is displayed by this behavior?
A. Consumer demand
B. Sunk costs
C. Price optimization
D. Thinking at the margin
D. Thinking at the margin
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Consider two individuals, Jesse and April, who hand paint kites and snowboards. Table 3.1 shows how much of each good Jesse and April can paint in one hour. April's opportunity cost of painting one snowboard is painting
A) 1.5 kites. B) 3 kites. C) 4 kites. D) 12 kites.
Refer to Table 11-7. What is the average total cost of production when the firm produces 120 lanterns?
A) $1,680 B) $72 C) $14 D) $12.3
Which of the following is NOT true of opportunity cost?
a. Opportunity costs are subjective because they depend upon how the decision-maker values his or her options. b. Opportunity costs are only the monetary costs of lost options. c. Opportunity costs are the highest-valued alternative sacrificed in order to choose an option. d. Only the decision-maker can determine his or her opportunity costs for any particular action.
Industry A has four firms. The largest firm in Industry A has more than 90 percent of the market share. Industry B also has four firms, but each of those four firms in Industry B has 25 percent of the market share. The Herfindahl-Hirschman index will be
A) the same for both industries, but the four-firm concentration will be larger for Industry B than Industry A. B) the same for both industries, but the four-firm concentration will be larger for Industry A than Industry B. C) larger for Industry B than Industry A, but the four-firm concentration will be the same. D) larger for Industry A than Industry B, but the four-firm concentration will be the same.