If you own a condo and you decide to lease it to your cousin,
A. there is no opportunity cost of leasing the condo because you own it.
B. there is no opportunity cost of leasing the condo because you collect rent from your cousin.
C. there is an opportunity cost of leasing the condo because you could have chosen to live in it.
D. the only cost relevant to this decision is the price you paid for the condo.
Answer: C
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The formation of cartels is primarily a concern in the __________ market structure(s)
a. perfectly competitive b. monopolistically competitive c. oligopoly d. monopoly e. perfectly competitive and monopolistically competitive
When residents surrounding an airport complain about noise from aircraft landings and takeoffs, the relevant economic analysis is that of
a. externalities. b. equality-efficiency trade-off. c. comparative advantage. d. the cost decrease of the service sector. e. the cost disease of personal services.
The profit maximizing price for the monopolist will be
A. $5.00. B. $2.90. C. $3.35. D. $4.50.
Which of the following is not a reason why specialization and trade are beneficial to society?
A. The total output of economic goods may be increased even without any increase in resources B. Scarce resources are utilized more efficiently by exploiting differences among them C. Specialization fosters learning by doing, thus lowering the unit-costs of products D. Firms and workers become less dependent on others for producing goods and services