The price of an airline ticket from Denver to Chicago costs $450. A bus ticket costs $150. Traveling by plane takes 2 hours compared with 32 hours by bus. Other things constant, Erica would gain by choosing air travel if, and only if, she values her time at more than

Figure 2-2

Assume that U.S. agricultural land is used either to raise cattle for beef or to grow wheat. represents the production possibility frontier for beef and wheat. The opportunity cost of moving from point G to point F equals
a.
0.25 million bushels of wheat
b.
1.75 million bushels of wheat
c.
0.125 bushels of wheat
d.
8 bushels of wheat
e.
2 bushels of wheat

The first firm in an industry

A. may make an economic profit. B. will make a loss so large that it wants to shutdown. C. will always make an economic profit. D. will make a loss but want to stay in business.