An economy has two workers, Jen and Rich. Everyday they work, Jen can produce 2 TVs or 10 radios, and Rich can produce 4 TVs or 12 radios. What is the opportunity cost for Rich to produce one radio?
A. 1/6 TV
B. 4 TVs
C. 1/3 TV
D. 1/12 TV
Answer: C
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If a bank has ________ rate-sensitive assets than liabilities, then ________ in interest rates will increase bank profits
A) more; a decline B) more; an increase C) fewer; an increase D) fewer; a surge
Bid-rigging is less likely in
a. oral auctions b. second-price auctions c. first-price sealed-bid auctions d. all are equally likely
A firm has $200 million in total revenue and explicit costs of $190 million. If its owners have invested $100 million in the company at an opportunity cost of 10 percent interest per year, the firm's accounting profit is:
a. $400 million. b. $100 million. c. $80 million. d. $10 million. e. zero.
The marginal product of labor (measured in units of output) of a firm is given by MPN = A(2000 - N)where A measures productivity and N is the number of labor hours used in production. Suppose the price of output is $6 per unit and A = 0.002. (a)What will be the demand for labor if the nominal wage is $18?(b)What will be the demand for labor if the nominal wage rises to $21?
What will be an ideal response?