A ticket to an Eric Clapton concert costs $45 . If you have a ticket, you can "scalp" it (sell it illegally) for $75 . To a ticket holder, the opportunity cost of actually attending the concert is
a. $45.
b. $50.
c. $75.
d. $115.
c
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Explain how the CPI is constructed
What will be an ideal response?
Refer to Figure 12-4. What is the amount of its total fixed cost?
A) $1,080 B) $1,440 C) $2,520 D) It cannot be determined.
In the mid-1990s, cattle ranchers in the United States kept raising cattle even though prices were at a ten-year low and below average total cost. What is the likely explanation for this?
A) The ranchers were hoping to receive government subsidies. B) The exit costs were too high. C) Continuing to operate resulted in smaller losses than would have been incurred by shutting down. D) Cattle is an important source of protein and its production is essential for the United States.
The statement "Resources employed in producing X are better suited to making Y" is another way of saying resources
a. are specialized. b. are scarce. c. are used inefficiently. d. are unproductive. e. have no opportunity cost.