Carl is considering attending a concert with a ticket price of $35 . He estimates that the cost of driving to the concert and parking there will total an additional $20 . In order to attend the concert, Carl will have to take time off from his part-time job and forgo studying for an exam scheduled for the next morning. He estimates that he will lose 3 hours at work, at a wage of $6 per hour, plus
2 hours of study time. Carl's opportunity cost of attending the concert equals
a. $73 plus the value of the higher exam grade he could earn by studying longer
b. $73
c. $35 plus the value of the higher exam grade he could earn by studying longer
d. $35
e. $55 plus the value of the higher exam grade he could earn by studying longer
A
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Suppose that nominal GDP in 2016 was less than real GDP in 2016. Given this information, we know for certain that
A) real GDP in 2016 was less than real GDP in the base year. B) real GDP in 2016 was greater than real GDP in the base year. C) the price level in 2016 was less than the price level in the base year. D) the price level in 2016 was greater than the price level in the base year.
The above figure shows the isoquants for producing steel. Constant returns to scale are
A) present when producing less than 10,000 tons. B) present when producing between 10,000 and 20,000 tons. C) present when producing more than 20,000 tons. D) never present.