According to opportunity-cost theory, the cost to an airline of letting its employees fly at no charge
A) depends upon the alternatives available to the employees.
B) is greater around the Christmas holidays.
C) is zero.
D) will depend upon the value employees place upon travel.
B
You might also like to view...
Social insurance taxes and individual income taxes comprise more than 80 percent of federal revenues
a. True b. False
Figure 2-7
Which of the following could explain the shift in the production possibilities frontier shown in from AC to AB?
a.
technical improvements in both petroleum and clothing production
b.
a productive improvement in clothing production that has no effect on petroleum production
c.
a decrease in the size of the labor force that can produce either petroleum products or clothing
d.
major oil reserves in Alaska are declared off-limits to producers in order to protect the environment
e.
major oil reserves are discovered off the coast of Africa
A firm produces and sells two goods, A and B. Good A is known to have many close substitutes; good B makes up a significant portion of most families' budgets. A price increase for each good would most likely cause total revenues for good A to:
A. increase, and total revenues for good B to increase. B. increase, and total revenues for good B to decrease. C. decrease, and total revenues for good B to decrease. D. decrease, and total revenues for good B to increase.
If two firms pollute, and the increase in costs to Firm A from decreasing pollution is equal to the decrease in costs to Firm B from increasing pollution:
A. the firms cannot benefit from trading the right to pollute. B. the firms can benefit by trading the right to pollute. C. while both firms can benefit from trading, there is no way for them to determine an agreeable price. D. both firms will stop polluting.