The concept of opportunity cost

A. can be applied to the analysis of any decision-making process.
B. refers only to actual payments and incomes.
C. is relevant only to economics.
D. applies to consumers but not to firms.


Answer: A

Economics

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As inflation increases, households become ________ uncertain leading to ________ spending.

A. more; more B. less; less C. more; less D. less; more

Economics

To maximize profits, a perfectly competitive firm should do all the following except:

A. produce until marginal cost equals price. B. produce until per-unit profits are maximized. C. produce until marginal revenue equals marginal cost. D. produce until economic profits are maximized.

Economics

Which of the following is exempt from antitrust laws?

A. professional football B. airlines C. petroleum companies D. hospitals

Economics

The demand for new capital depends on the interest rate.

Answer the following statement true (T) or false (F)

Economics