The opportunity cost of an action:
a. is equal to the marginal cost of an action
b. is equal to explicit cost
c. is equal to the next best alternative forgone
d. is the total cost of an action
c
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Use the data in the table below to answer the following question.PriceQuantity Demanded$201218171620142412301036840644448The price elasticity of demand (based on the midpoint formula) when price increases from $18 to $20 is
A. -3.29. B. -0.33. C. -1. D. -1.37.
Which of the following is true? a. A majority of U.S. money, whether M1 or M2, is in the form of legal tender
b. If a bank lends out its excess reserves of $90,000, at the time the loan is made, the money supply will increase by $90,000. c. Reserve requirements exist primarily to eliminate bank runs. d. When there are two forms of money available, people prefer to spend the form of money that is more valuable.
QN=61 (17780) In 2007, Corny Company grows and sells $2 million worth of corn to Tasty Cereal Company, which makes corn flakes. Tasty Cereal Company produces $6 million worth of corn flakes in 2007, with sales to households during the year of $4.5 million. The unsold $1.5 million worth of corn flakes remains in Tasty Cereal Company's inventory at the end of 2007. The transactions just described contribute how much to GDP for 2007?
a. $4.5 million b. $6 million c. $6.5 million d. $8 million
A monopoly produces widgets at a marginal cost of $20 per unit and zero fixed costs. It faces an inverse demand function given by P = -100 ? 4Q. Suppose fixed costs rise to $401. What happens in the market?
A. The firm will reduce its output and raise price. B. The firm will raise the price. C. The firm will continue to produce the same output and charge the same price. D. The firm will shut down immediately.