Amy can study for an hour or spend that hour sleeping or going out for dinner. If she decides to study for the hour, the opportunity cost of the hour spent studying is
A. definitely going to sleep.
B. studying, since this is the choice she opted for.
C. sleeping or going out for dinner, whichever she would have preferred the most.
D. sleeping and going out for dinner.
E. definitely going out to dinner because she must eat at some time.
Answer: C. sleeping or going out for dinner, whichever she would have preferred the most.
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Explain why some amount of ignorance can be rational
What will be an ideal response?
At a recent company meeting, Ravi Batra, sales manager of Life's a Beach, a surfboard producer announced, "We have increased our sales by 13 percent in just 9 months
" Suppose 9 months ago, its sales amounted to $245,000, what is the value of its sales today? A) $31,850 B) $207,638 C) $276,850 D) $359,905
When there is a decrease in the price of a good,
A. the elasticity of demand will determine the degree to which quantity demanded falls. B. the elasticity of demand will determine the degree to which quantity demanded rises. C. the demand curve will shift to the right. D. the demand curve will shift to the left.
Refer to Figure 4-1. If the market price is $2.50, what is the consumer surplus on the first ice cream cone?
A) $0.50 B) $1.00 C) $3.50 D) $9.00