If a firm buys a specialized metal stamping machine that will last 4 years for $125,000 and cannot resell it, the opportunity cost is
A) $0.
B) $31,250.
C) $125,000.
D) $93,750.
A
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From a microeconomic perspective, the relatively low U.S. household saving rate contributes to an increasing inequality of wealth resulting from:
A. the higher saving rate of low-income households. B. the higher national saving rate. C. the lower saving rate of low-income households. D. the lower national saving rate.
When external costs are present,
A) competitive, unregulated markets are efficient. B) transaction costs will be high. C) a tax might be able to create efficiency. D) property rights have already been established.
State and local governments generate most of their revenues through
A. Inventory and excise taxes. B. Corporate profit taxes. C. Sales and property taxes. D. Income taxes.
Figure 2-2
Assume that U.S. agricultural land is used either to raise cattle for beef or to grow wheat. represents the production possibility frontier for beef and wheat. Between points F and G, the opportunity cost increasing wheat by two bushels equals
a.
0.25 million pounds of beef
b.
1.75 million pounds of beef
c.
0.125 pounds of beef
d.
8.0 pounds of beef
e.
0.5 pounds of beef