Answer the following questions true (T) or false (F)
1. RJR Nabisco has three alternatives for manufacturing snack foods:
• Option 1: Manufacture cookies alone and obtain a profit of $30 million.
• Option 2: Manufacture chips alone and obtain a profit of $25 million.
• Option 3: Manufacture both cookies and chips and obtain a profit of $35 million.
Given the information above, the opportunity cost of this firm is $30 million.
2. The number of U.S. farms is on the order of 4 million at present.
3. The value of any index for the reference or base year is always 1.
1. TRUE
2. FALSE
3. TRUE
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Aggregate demand in India increased in 2008. In addition, real GDP grew strongly and inflation approached 10 percent. The best explanation for this inflation is that
A) aggregate supply did not change. B) potential GDP decreased. C) there was a movement up along the aggregate demand curve in 2008. D) potential GDP increased, but at a slower rate than aggregate demand.
In 2017, the U.S. median income for a family of four was about $61,000.
Answer the following statement true (T) or false (F)