An example of an implicit cost of production is:
a. the cost of leather used in manufacturing furniture
b. the opportunity cost of space in your home that is used for a home office.
c. the wages paid to high school students that work in a fast-food restaurant.
d. none of the above.
b
You might also like to view...
Coal and iron ore are complements in the manufacture of steel. An increase in the price of coal would lead to
A) an increase in the demand for iron ore as producers substitute more iron ore for coal in the production process. B) a decrease in the demand for iron ore as steel manufacturers reduce production of steel. C) an increase in the supply of iron ore as iron ore producers see an opportunity to expand their markets. D) no change in the demand for iron ore since the steel makers must use both iron ore and coal if they are to make steel.
The Coase theorem applies only in the case of _____
a. merit goods b. common resources c. inferior goods d. private goods
Getting a college degree is an example of investing in:
A. human capital. B. technology. C. physical capital. D. research and development.
In this graph, which of the following is assumed to be changing?
a. autonomous consumption
b. investment
c. government purchases
d. the price index