The opportunity cost of any good or service is the
A. actual dollar cost of doing or making it.
B. highest price that a seller can get for the item.
C. value of the next best alternative.
D. cost associated with a value judgment.
E. cost of producing the good or service.
Answer: C
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When calculating the arc elasticity of demand, the percentage change in price (quantity) should be based on the average of the starting and ending prices (quantities)
Indicate whether the statement is true or false
Refer to Table 4.2. If you choose to invest in Japanese bonds, your investment return from Scenario A will be
A) 1%. B) 3%. C) 4%. D) 7%.
If a firm used a combination of inputs that was to the left of its isocost line, it would indicate that
A) it is exceeding its budget. B) it is not spending all of its budget. C) it is operating at its optimal point because it is saving money. D) None of the above
Metering is
a. A form of indirect price discrimination b. A form of direct price discrimination c. An evaluation of a product d. An example of bundling