Maureen's college raises the cost of room and board per semester. This increase raises Maureen's opportunity cost of attending college
a. even if the amount she would have to pay for room and board if she didn't attend college rose by the same amount. An increase in opportunity cost reduces Maureen's incentive to attend college.
b. even if the amount she would have to pay for room and board if she didn't attend college rose by the same amount. An increase in opportunity cost increases Maureen's incentive to attend college.
c. only if the amount she would have to pay for room and board if she didn't attend college rose by less than the increase in the amount her college charges. An increase in opportunity cost reduces Maureen's incentive to attend college.
d. only if the amount she would have to pay for room and board if she didn't attend college rose by less than the increase in the amount her college charges. An increase in opportunity cost increases Maureen's incentive to attend college.
c
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Which of the following is an example of shoe-leather cost?
a. Diane has to shut down her supermarket for a day in order to change the prices on everything. b. Viktor has to pay a value added tax on raw materials that he is manufacturing into goods for resale. c. Zara has to calculate the depreciation of each of the goods in her office each year. d. Ishmael goes to the ATM twice a week because consumer prices have been fluctuating so rapidly.
If two firms pollute, and the increase in costs to Firm A from decreasing pollution is equal to the decrease in costs to Firm B from increasing pollution:
A. the firms cannot benefit from trading the right to pollute. B. the firms can benefit by trading the right to pollute. C. while both firms can benefit from trading, there is no way for them to determine an agreeable price. D. both firms will stop polluting.