After graduating from college, Jim had two choices. He can either move to Florida, from Philadelphia, where he can work as an analyst and earn 60,000 or he can stay in Philadelphia and work in a car dealership earning 59,000 . His opportunity cost of moving to Florida includes
a. The benefits he could have received from playing soccer
b. 59,000
c. both a and b
d. none of the above
QUESTION 2Which of the following is TRUE?
a. To reduce cannibalization among products, reposition a product so that it does not directly compete with the other
b. After acquiring a substitute product, lower prices on both the products
c. After acquiring a complementary product, raise prices on both the products
d. None of the above
QUESTION 3Opportunity cost of an activity
a. Is included in accounting costs
b. Does not include monetary costs
c. May include both monetary costs and foregone incomes
d. Is known with certainty
QUESTION 4Which of the following is FALSE?
a. To reduce cannibalization among products, make the products more homogenous
b. After acquiring a substitute product, raise prices on both the products
c. After acquiring a complementary product, lower prices on both the products
d. All of the above
QUESTION 5Economists argue that:
a. accounting costs include all types of costs, even implicit costs.
b. every decision has an opportunity cost.
c. some decisions have opportunity costs, while others don't.
d. economic decisions should include sunk costs.
QUESTION 6Which of the following is FALSE?
a. To reduce cannibalization among products, reposition a product so that it does not directly compete with the other
b. After acquiring a substitute product, lower prices on both the products
c. After acquiring a complementary product, lower prices on both the products
d. All of the above
QUESTION 7The 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 cost of the next best alternative forgone
d. is the total cost of an action
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