Hutch Technology makes computer monitors, which sell for $500 each. What is the opportunity cost of producing ten monitors?
a. $5,000
b. the other goods that could be produced with the resources that produce the ten monitors
c. the profits that Hutch earns when it sells the ten monitors
d. the profits that Hutch loses if it does not produce the monitors
e. All of the above are correct.
B
You might also like to view...
In the 1930s, the federal government established the social security system to provide a minimum level of income to elderly and disabled people. This primarily addressed the economic question of:
A) When will each good be produced? B) For whom shall the goods be produced? C) What goods and services should a society produce? D) How should the resources be organized for production?
As the marginal propensity to consume (MPC) decreases, the spending multiplier:
A. increases. B. decreases. C. remains constant. D. becomes undefinable.
Macroeconomics:
A. studies the behavior of individual consumers, firms and markets. B. studies the behavior of the economy as a whole. C. involves the interaction between different countries in specific markets. D. studies how computer automation has changed economics.
It has been noted that when the price of a good increases, people purchase less of the good. This is an example of
A) macroeconomic analysis. B) irrational behavior. C) normative economic analysis. D) positive economic analysis.