Opportunity cost refers to:
A. the amount of dollars that have to be spent in order to employ a resource.
B. the cost of employing one more unit of a resource.
C. a cost that a decision maker has already incurred.
D. the cost associated with foregoing the opportunity to employ a resource in its best alternative use.
D. the cost associated with foregoing the opportunity to employ a resource in its best alternative use.
You might also like to view...
If a person supplies more hours of labor in response to a wage increase, then
A) the substitution effect is greater than the income effect. B) the income effect is greater than the substitution effect. C) the income effect equals the substitution effect. D) the person is not maximizing utility.
Suppose the log-linear demand for widgets is found to be
Ln(Q) = 1.5 - 2ln(p) According to this equation, a 10% increase in price will decrease Q by what percentage? What is the price elasticity of demand?
Why can't all goods be inferior?
What will be an ideal response?
The potential for redistribution cannot be exaggerated
Indicate whether the statement is true or false