?Suppose Ripco owns the building from which it operates. If:
a. ?its usage of the building precludes it from renting to anyone else, there is an opportunity cost.
b. ?the firm pays rent, there is an opportunity cost.
c. ?the firm pays no rent, there is no opportunity cost.
d. ?the firm does not rent the building to anyone else, there is no opportunity cost.
e. ?the firm can use the building for other things, there is no opportunity cost.
Ans: a. ?its usage of the building precludes it from renting to anyone else, there is an opportunity cost.
You might also like to view...
Answer the following statement(s) true (T) or false (F)
1. In the absence of transactions costs, changes in property rights have no effect on economic efficiency. 2. In the absence of transactions costs, changes in property rights have no effect on the distribution of income. 3. Changes in property rights will not affect the allocation of resources as long as transactions costs are zero and the subsequent effects on market demand are negligible. 4. The weak Coase theorem is true when reallocation of property rights have negligible income effects . 5. According to the Coase Theorem, in the absence of transactions costs, recipients of an external benefit can be expected to offer a bribe in exchange for greater production.
Economic freedom by its nature suggests
A) minimal government interference. B) a lack of laws and regulations. C) economic anarchy. D) zero government.
Suppose that in the economy of Springfield, USA, Homer, who has an income of $50,000, pays $10,000 in taxes. Edna, who has an income of $35,000, pays $9,000 in taxes. Based on this information, we could say that Springfield's tax system is
A) proportional. B) progressive. C) regressive. D) flat.
If consumers reduce the purchase of goods whose relative prices rise (substitution bias), the consumer price index (CPI) will tend to have an upward bias over time (overstates inflation)
a. True b. False Indicate whether the statement is true or false