The cost involved when choosing between alternatives is known as the
A. marginal cost.
B. normative cost.
C. sunk cost.
D. opportunity cost.
Answer: D
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What is happening in this perfectly competitive firm if the market price is P3?
a. In the short run and the long run the firm only makes positive accounting profits. b. In the short run and the long run firms will have normal profits c. In the short run the firm will make normal profits and in the long run the firm will make positive economic profits d. In the short run the firm will make positive economic profits but in the long run the firm will have negative economic profits. e. In the short run firms will have positive economic profit but in the long run firms will enter the market and drive profits back to normal
In the late 1800s and early 1900s, farmers in the Great Lakes region
a. specialized in grain production. b. specialized in production of fresh fruits and vegetables. c. switched their emphasis from grain production to dairy farming. d. earned high profits by raising cattle for beef production.
The production possibilities curve shows the different combinations of goods that can be produced with a set of given resources
Indicate whether the statement is true or false
If the MPC is 4/5, the multiplier is 5/4
a. true b. false