Define opportunity cost. Given the definition of opportunity cost, explain what is meant by the statement "There is no such thing as a free lunch."
What will be an ideal response?
Opportunity cost is what we give up, or forgo, when we make a choice. There
is no such thing as a free lunch because everything involves a cost, even if it
is just a time cost.
Economics
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An increase in the real interest rate will cause an increase in ________
A) saving B) planned investment C) net exports D) all of the above E) none of the above
Economics
Suppose a perfectly competitive firm faces the following short-run cost and revenue conditions: ATC = $700; AVC = $500; MC = $600; MR = $600. The firm should
A) increase output. B) decrease output. C) continue to produce its current output. D) shut down.
Economics