Fred has already paid $50 for a ticket to a football game that is sold out. Ann has offered Fred $90 for the ticket. That is the maximum offer Fred has received for the ticket. Assume the value or cost of Fred's time to go to the game is $60. What is Fred's opportunity cost of going to the game?
a) $50
b) $60
c) $90
d) $140
e) $150
e) $150
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Marginal social benefits are equal to
A. marginal private benefits + marginal internal benefits. B. marginal private benefits - marginal internal benefits. C. marginal private benefits + marginal external benefits. D. marginal private benefits - marginal external benefits.
The Toys-R-Danger-Us Toy Company can produce 500 water pistols for a total cost of $1,400 . The company can also produce 1,000 water pistols for a total cost of $3,000 . but it would have costs of $200 even if it produced no water pistols. Which of the following is true?
a. Total cost is increasing at a decreasing rate. b. Total cost is increasing at a constant rate. c. Marginal cost is positive and increasing as output increases. d. Variable cost is positive and decreasing as output increases. e. Fixed cost is positive and decreasing as output increases.
Here is how an open market sale works: A commercial bank __________ government securities to (from) the Fed, which lowers the bank's deposits at the __________ and __________ the bank's __________
A) buys; Fed; lowers; reserves B) sells; Treasury; raises; reserves C) sells; Fed; raises; reserves D) buys; Treasury; lowers; liabilities E) none of the above
Opportunity cost can best be defined as the
a. money cost of a good or service.
b. money cost plus interest on money borrowed to buy a good or service.
c. cost of the resources used to produce a good or service.
d. value of the best alternative forgone when the alternative at hand is chosen.