Suppose your donut shop earns $24,000 in total revenues per month with explicit costs of $12,000 and opportunity costs of $8,000. Your accounting profit is
A) $16,000.
B) $12,000.
C) $4,000.
D) zero.
B
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Both an NBA basketball player and a fast-food cook are going to graduate school. Who has a higher opportunity cost? Explain
What will be an ideal response?
Assuming that dry cleaning is a normal good, an increase in consumer income, other things being equal, will:
a. increase the demand for dry cleaning. b. decrease the demand for dry cleaning. c. increase the quantity demanded of dry cleaning. d. decrease the quantity of dry cleaning demanded.
In general, when the price of a fixed factor of production increases:
A. the profit-maximizing price falls. B. marginal cost increases. C. the profit-maximizing level of output increases. D. the profit-maximizing level of output does not change.
The assertion that "there is no free lunch" means that
A. there are always trade-offs between economic goals. B. marginal analysis is used in economic reasoning. C. rational choices do not involve excessive costs. D. all production has an opportunity cost.