Kate receives two free passes to the waterpark for her birthday. She's not a huge fan of waterparks, and, therefore, would not buy such tickets for their face value of $90. Kate decides to use the tickets. This type of behavior is explained with the concept of:
A. the implicit cost of ownership.
B. ignoring sunk costs.
C. the fungibility of money.
D. None of these.
Answer: A
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Suppose your firm operates in a perfectly competitive market and decides to double its output. How does this affect the firm's marginal profit?
A) Marginal revenue and marginal cost increase B) Marginal revenue increases but marginal cost remains the same C) Marginal cost may change but marginal revenue remains the same D) Marginal revenue and marginal cost decrease
It is not uncommon for people to say something like, "If we can put someone on the moon we should be able to . . . ," followed by the person's favorite project. What response can an economist make to this person?
What will be an ideal response?
The wages paid to the workers in a leather processing plant are: a. considered the total cost of the plant
b. considered a fixed cost of the plant. c. considered a variable cost of the plant. d. considered a marginal cost of the plant.
Use the following table to answer the question below: The amount of total output produced from various combinations of labor and capital. 
If labor is fixed at three units, how much does the second unit of capital add to total output?
A. 150 B. 100 C. 210 D. 360 E. none of the above