Gomer decides to spend an hour playing basketball rather than studying. His opportunity cost is:
a. nothing, because he enjoys playing basketball more than studying.
b. the increase in skill he obtains from playing basketball for that hour.
c. the benefit to his grades from studying for an hour.
d. nothing, because he had a free pass into the sports complex to play basketball.
c. the benefit to his grades from studying for an hour.
Gomer’s opportunity cost is the benefit to his grades from studying for an hour.
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It has been noted that a country that grants a considerable amount of economic freedom will experience
A) positive rates of per capita income growth. B) low levels of political freedom. C) dead capital. D) negative rates of per capita income growth.
Which type of cost does not depend on a firm's output?
A. fixed cost B. total cost C. variable cost D. marginal cost