If Ripco owns the building where it operates, then if
a. the firm pays no rent, there is no opportunity cost
b. the firm does not rent the building to anyone else, there is no opportunity cost
c. the firm pays no rent, there is an opportunity cost
d. its usage of the building precludes it from renting to anyone else, there is an opportunity cost
e. the firm could use the building for other things, there is no opportunity cost
D
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The marginal propensity to save is 0.2. Equilibrium real GDP will decrease by $50 billion if aggregate expenditures schedule decrease by
A. $15 billion. B. $10 billion. C. $16 billion. D. $40 billion.
Agriculture is the primary occupation in Agraria and agricultural products account for two-thirds of Agraria's gross domestic product
How will a sharp fall in the price of agricultural products affect Agraria's economy if the demand for such products is price-inelastic?
A free rider in economic theory is someone who does not contribute toward covering the cost of goods which he desires because he
A) has a comparative advantage in defraying the cost of other goods. B) knows his paying or not paying will make no difference in their availability to him. C) regards all such costs as deadweight costs. D) regards all such costs as transaction costs.
The chaebols encouraged the Korean government to open up Korean financial markets to foreign capital. The Korean government responded by
A) allowing unlimited short-term foreign borrowing but maintained quantity restrictions on long-term foreign borrowing by financial institutions. B) allowing unlimited short-term and long-term foreign borrowing by financial institutions. C) maintaining quantity restrictions on short-term foreign borrowing but allowing unlimited long-term foreign borrowing by financial institutions. D) not allowing any foreign borrowing by financial institutions.