Opportunity cost can best be defined as
A) the interest cost of financing a business loan at the bank.
B) the value of all of the alternatives sacrificed.
C) the value of the next-highest-ranked alternative.
D) There is no real definition for opportunity cost.
Answer: C
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Why are cows and chickens less prone to becoming extinct?
a. They are usually consumed in huge numbers b. They are mainly privately owned c. They are a part of common resources d. Poaching these animals for their meat is banned by the government e. They are not used for commercial purposes
The four-firm concentration ratio for an industry is
a. the number of firms in the industry, divided by four. b. the share of industry output sold by the four largest firms in the industry. c. the percentage of total industry profits claimed by the four largest firms. d. the share of industry output sold by the fourth largest firm in the industry.
A budget constraint line represents combinations of two goods that provide an individual the same total utility.
Answer the following statement true (T) or false (F)
Sulfur Dioxide Discharged (Tons)Firm AFirm B10$8,000$9,000910,00012,000815,00018,000720,00027,000628,00037,000
Table 9.7 shows the production cost for two utilities at different levels of sulfur dioxide emissions. Assume that the government issued 8 marketable pollution permits to each firm. If the two firms agree to swap one permit and split the difference between the willingness to pay and willingness to accept, what is the price of a permit?
A. $4,500 B. $5,500 C. $7,250 D. $9,750