Which of the following statements is true?
a. The opportunity cost of a decision is equal to the explicit cost in monetary terms
b. The opportunity cost of a decision is the value of the best foregone alternative.
c. Some economic decisions have zero opportunity cost.
d. The opportunity cost of attending college is the same for all students at the same university but may differ among students at different universities.
b
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When the pricing of one product produced by a firm adversely affects the revenue earned by another product of the same firm, the second product has been
A) cannibalized. B) tied. C) bundled. D) sacrificed.
In 2012, what percentage of total income in the U.S. was earned by the richest fifth of all U.S. households?
a. 20% b. 30% c. 40% d. 50%
Setting up a hub-and-spoke distribution towards inventory and retail delivery is an example of
A. reduced consumer transactions cost. B. reduced producer transactions cost. C. increased consumer transactions cost. D. increased producer transactions cost.
A natural monopoly
A. Has high marginal costs. B. Has low barriers to entry. C. Will charge high prices if unregulated. D. Charges a lower price than a competitive firm.