Steven lives in a big city where there is a shortage of parking spots. He has a parking spot in his driveway where he parks his car. Which of the following statements is most correct?
A. Steven has a lower opportunity cost of owning a car than his neighbor, who must rent a parking spot.
B. The opportunity cost of using the spot is zero, because Steven owns the house.
C. The opportunity cost of using the parking spot is the price he could charge someone else for using the spot.
D. The opportunity cost depends on how much Steven's mortgage payment is.
Answer: C
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The Vuvuza Corporation currently has 10 million shares of stock outstanding, the stock is trading for $42 per share, and its stock of capital goods is valued at $70 million
Based on the Tobin's q value for the Vuvuza Corporation, we would expect Vuvuza to A) increase its capital stock. B) depreciate more of its assets. C) issue more shares of stock to be able to afford to finance investment expenditures. D) cut back on current production.
________ describes hardy people who bounce back, have a sense of control over their lives and do not fear change
a. Cognition b. Emotive ability c. Psychological hardiness d. Reactivity
"The deadweight loss of a monopoly equals the monopoly firm's profits." Do you agree or disagree? Why?
What will be an ideal response?
An American good with a price tag of $89 costs 809 pesos. The exchange rate must be approximately
A) $11.00 = 1 peso B) $0.11 = 1 peso C) $0.89 = 1 peso D) $0.09 = 1 peso E) none of the above