Suppose that in an hour Joe can prepare 10 sandwiches or 5 pizzas. The opportunity cost of Joe producing one sandwich is
A) 2 pizzas.
B) 1/2 pizza.
C) 5 pizzas.
D) 1 pizza.
B
Economics
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A company finds that at its present level of production, MR = MC at $14, MC = AVC at $15, and MC = ATC at $20. Your advice to the firm regarding its short-run operations is
A. to continue production at a loss. B. to shut down. C. to continue production, as it is earning an economic profit of $1 per unit. D. to continue production, as it is earning an economic profit of $6 per unit.
Economics
If the cost of the Department of Agriculture's minimum food budget for two people is $2,000 per year, the official poverty line for a family of two would be
A. $667. B. $2,000. C. $6,000. D. $12,000.
Economics