Stuck in Cleveland You purchased a roundtrip ticket to a friend's wedding in Cleveland on Saturday for $400, but on Sunday you discover your return flight is canceled due to weather. The airline will not be able to get you back home until late Monday but Greyhound has an overnight bus route that arrives at 6:00am Monday for $60 . What is the opportunity cost of missing work on Monday?
Since the airline will fly you later, it will not cost any more to get home if you are willing to miss work on Monday. But if you want to be at work on Monday, the airline ticket is a sunk cost. At this point, the cost of being at work on time, if a bit haggard, is the $60 bus fare.
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If the price of grapes increases, total expenditures on grapes will decline if
a. there are few substitutes for grapes. b. the supply of grapes is inelastic. c. the demand for grapes is elastic. d. grapes are a normal good.
A monopolistically competitive industry is in the process of moving toward long-run equilibrium. This period the product of a typical firm has more substitutes than last period. This means that
A. there was entry into the industry. B. a typical firm will produce more this period. C. a typical firm's profits will fall this period. D. both a and c E. all of the above
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, Point E necessarily represents
A. only motorcycles being produced. B. overallocation of resources. C. an impossible production point. D. technological advancement.
From 1935 to 2017, the yield per acre for wheat has ________ in the United States.
A. roughly doubled B. slightly declined C. more than tripled D. increased more than 6-fold