The total cost of purchasing a car is:
a. the dollar amount paid for it.
b. the dollar amount paid for it plus the seller's opportunity cost.
c. the dollar amount paid for it plus the buyer's opportunity cost of time spent on buying it.
d. the dollar amount paid for it plus the seller's opportunity cost of the time spent on looking for a buyer.
C
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An economy has two workers, Jen and Rich. Every day they work, Jen can produce 2 TVs or 10 radios, and Rich can produce 4 TVs or 12 radios. What is the opportunity cost for Rich to produce one radio?
A. 1/3 TV B. 1/6 TV C. 1/12 TV D. 4 TVs
Economies of scale are created by greater efficiency of capital and by:
A. longer chains of command in management. B. better wages for labor. C. smaller plant sizes. D. increased specialization of labor.
Economic stagnation coupled with high inflation is commonly called:
A. stagflation. B. inflationary stagnation. C. stagnatory growth. D. inflagnation.
Sam owns a taco restaurant, and he conducted a consumer survey that indicates that the price elasticity of demand for his restaurant is 3.5. You would advise Sam to
A. Lower his price to increase revenue. B. Keep his price the same to maximize revenues. C. Offer more high-priced products. D. Raise his price to increase revenues.