A singer would willingly perform in a concert for $100,000. If she is paid $500,000 for the concert, she is
A) receiving $500,000 to cover her opportunity cost.
B) not being paid her full opportunity cost.
C) receiving $400,000 of economic rent.
D) certainly being paid more than warranted by the level of demand.
Answer: C) receiving $400,000 of economic rent.
Economics
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The opportunity cost of postponing income to some future time depends on the interest rate
a. True b. False Indicate whether the statement is true or false
Economics
To graphically demonstrate the principle of increasing marginal opportunity cost, the production possibility curve must be:
A. bowed out. B. flat. C. bowed in. D. straight.
Economics