What would be an example of an implicit cost of production?
a. the cost of a delivery truck in a business that rarely makes deliveries
b. the cost of employee training programs
c. the cost of raw materials for producing bread in a bakery
d. the cost of lost income an entrepreneur could have earned working for someone else
Ans: d. the cost of lost income an entrepreneur could have earned working for someone else
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Assume that your roommate is very messy. According to campus policy, you have a right to live in an uncluttered apartment. Suppose she gets an $80 benefit from being messy but imposes a $60 cost on you. The Coase theorem would suggest that an efficient solution would be for your roommate to
a. stop her messy habits or else move out. b. pay you at least $60 but less than $80 to live with the clutter. c. continue to be messy and force you to move out. d. demand payment of at least $60 but no more than $80 to clean up after herself.
Rational expectations theory is also known as the Friedman fooling theory
Indicate whether the statement is true or false