Which person has the highest opportunity cost of obtaining a college degree (assuming that attending college requires giving up his or her current position)?
A. Bill, who is unemployed.
B. Jane, who is an unwed mother and earns $15,000 a year.
C. Larry, who is a technician in the navy earning $18,000 a year with free food and housing.
D. Mary, who has a job earning $60,000 a year as a computer programmer.
E. Unable to determine from the data given.
Answer: D
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In an indefinitely repeated game, a firm might use a ________ to ________ a rival that defects from a cooperative strategy
A) trigger strategy; threaten B) trigger strategy; punish C) legal maneuver; sue D) tacit threat; dissuade
When there is multicollinearity in an estimated regression equation,
a. the coefficients are likely to be small. b. the t-statistics are likely to be small even though the R2 is large. c. the coefficient of determination is likely to be small. d. the problem of omitted variables is likely. e. the error terms will tend to have a cyclical pattern.
In Figure 23.3, diagram "a" presents the cost curves that are relevant to a firm's production decision, and diagram "b" shows the market demand and supply curves for the market. Use both diagrams to answer the following question: If the market demand curve is D2 in Figure 23.3, then in the long run,
A. There are zero economic profits, so there will be no entry or exit. B. There are zero economic profits, so firms will exit. C. Economic profit is less than zero, and firms will exit. D. Economic profit is greater than zero, and firms will expand production.
What are the constraints that a firm faces? How does each constraint limit the firm's profit?
What will be an ideal response?