Going skiing will cost Adam $80 a day. He also loses $40 per day in wages because he has to take time off from work. Adam still decides to go skiing
A) His decision is rational if Adam's marginal benefit of spending a day skiing is greater than his marginal cost.
B) The $80 price of skiing is not an opportunity cost and so did not affect Adam's decision.
C) He loses a total of $120 per day, so his decision is irrational.
D) Adam's lost $40 per day in wages is not an opportunity cost and so did not affect his decision.
E) Adam is definitely making a decision that is in the social interest.
A
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If Brazil's gross revenue from coffee exports doubles from one year to the next even though the number of bags of coffee exported declines 50 percent,
A) individual Brazilian coffee producers are price searchers. B) individual Brazilian coffee producers have substantial market power. C) the demand for Brazilian coffee is most likely elastic. D) the demand for Brazilian coffee is most likely inelastic.
A rival good
A) is one that is used up as it is consumed. B) is one that rival firms are trying to obtain. C) is exclusive. D) cannot be shared.