The opportunity cost of a college education includes wages lost while enrolled in school

In professional golf, a tournament winner might win, say, $1 million, whereas second place wins only $600,000. Why might golf have a 40% reduction in prize money from first and second place?

A) To ensure that there is enough money to pay those who finish near last. B) To motivate golfers to take risks they might not otherwise take. C) To motivate golfers to not take risks they might otherwise take. D) The Professional Golfers Association is a cartel.

When price and marginal cost are equal for a perfectly competitive firm, the firm is

A) minimizing average total cost. B) maximizing total revenue. C) maximizing economic profit. D) earning negative economic profit.