The opportunity cost of an action is always equal to:
a. the monetary expense incurred as a result of the action
b. the value of any alternative use of the time expended on the action.
c. the highest valued alternatives sacrificed as a result of the action.
d. the sum of the benefits received as a result of the action.
c
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Perfect competition describes a firm's behavior in a market model where:
a. there are few firms producing identical products. b. there are few firms producing highly differentiated products. c. there are many firms producing identical products. d. there are many firms producing highly differentiated products. e. there are barriers to entry and exit for the new firms.
In which of the following market structures can you find differentiated products?
A. monopoly B. perfect competition C. oligopoly D. monopolistic competition and oligopoly
If variable cost is $15 million, fixed cost is $14 million, and total revenues are $13 million, in the short run the firm will _____ and in the long run the firm will _____.
A. shut down; go out of business B. shut down; stay in business C. operate; go out of business D. operate; stay in business
Suppose the President asks you to write him a letter suggesting ways the government might help the economy achieve permanently higher rates of economic growth
Based on your understanding of growth theory and growth accounting, what would you suggest?