After purchasing a coffee cup from your local gas station for $5.00, you can always refill your cup for $0.50. The sunk cost of the coffee purchased at the gas station is:
A. $0.50.
B. $5.00.
C. $10.00.
D. $5.50.
B. $5.00.
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For a monopolist, marginal revenue is always
A) greater than price. B) equal to price. C) equal to zero. D) less than price.
A public good is:
A. rival in consumption and excludable. B. not rival in consumption, but excludable. C. rival in consumption, but not excludable. D. not rival in consumption and not excludable.
Adam Smith used the metaphor of the "invisible hand" to explain how:
A. markets mismatch buyers and sellers. B. business owners are benevolent. C. people acting in their own self-interest promote the interest of society as a whole. D. the production possibilities frontier illustrates efficient outcomes.
Which of the following statements is FALSE?
A) An increase in income causes an increase in the demand for a normal good. B) An increase in income causes a decrease in the demand for an inferior good. C) A decrease in income causes the demand curve for a normal good to shift to the left. D) An increase in income causes the demand curve for an inferior good to shift to the right.