Jack has a ticket to see the Foo Fighters for which he paid $30 yesterday. He takes an unpaid day off from work to get ready for the concert. When he arrives at the concert, five different people offer him $70 for his ticket. Jack decides to keep his ticket. At the time he makes this decision, his opportunity cost of seeing the Foo Fighters is:
A. $40.
B. $70.
C. $70 plus his foregone earnings.
D. $30 plus his foregone earnings.
Answer: B
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The “law” of diminishing returns rests on the “law” of variable input proportions.
Answer the following statement true (T) or false (F)
Figure 4-23
Refer to . In which market will the majority of the tax burden fall on the buyer?
a.
market (a)
b.
market (b)
c.
market (c)
d.
All of the above are correct.
When a second firm enters a monopolist's market:
A. the former monopolist's average cost increases as its output level decreases. B. the demand curve facing the former monopolist shifts to the right. C. the market price rises as the average cost increases. D. None of these
If the output is too high, to achieve the medium run equilibrium, the central bank will
A) increases policy rate. B) reduces policy rate. C) increase money supply. D) increases inflation rate.