Suppose it takes Dan 5 minutes to make a sandwich and 15 minutes to make a smoothie, and it takes Tracy 6 minutes to make a sandwich and 12 minutes to make a smoothie. What is the opportunity cost to Dan of making a sandwich?
A. 15 smoothies
B. 5 smoothies
C. 3 smoothies
D. 1/3 of a smoothie
Answer: D
You might also like to view...
The sample regression line estimated by OLS
A) has an intercept that is equal to zero. B) is the same as the population regression line. C) cannot have negative and positive slopes. D) is the line that minimizes the sum of squared prediction mistakes.
Continuing with the same family from the preceding question, suppose a risk neutral insurance company exists to provide vacation insurance. Suppose further that each vacation day requires a constant expenditure, and this expenditure is standard across everybody. This allows us to simplify the problem by considering all payments to be in terms of vacation days. What is the least the insurance
company would charge (in terms of vacation days)? a. 3 b. 4 c. 5 d. 6
If a firm in monopolistic competition is neither making a profit nor suffering a loss, its AR curve is
a. horizontal. b. touching its AVC curve. c. touching its ATC curve. d. below its MR curve.
Leader countries that experience modern economic growth early on will always grow faster than follower countries.
a. true b. false