Opportunity cost is best defined as the:
a. sum of all alternatives given up when a choice is made.
b. money spent once a choice is made.
c. highest-valued alternative given up when a choice is made.
d. cost of a good minus the satisfaction obtained from consuming it.
e. cost of capital resources used in the production of additional capital.
c
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A decrease in autonomous planned investment spending, other things equal, shifts the ________ curve to the ________
A) IS; right B) IS; left C) LM; left D) LM; right
Which of the following statements is true?
A) If marginal costs are constant, then it is optimal to advertise until the last dollar spent on advertising generates one additional dollar of sales. B) If the demand curve shifts leftward as the advertising expenditure increases, then the advertising elasticity of demand is positive. C) If the advertising elasticity of demand declines and consumer demand becomes more price elastic, then the optimal advertising-to-sales ratio declines. D) If the advertising elasticity of demand is positive, then the demand curve must be upward sloping.