Samia has decided that with the two hours in between classes she can do one of 3 things. She has ranked her choices, from highest to lowest as, (1 ) chat with her friends, (2 ) study economics or (3 ) take a nap
The opportunity cost of chatting with her friends is A) the combined value of studying economics and taking a nap.
B) the value of studying economics, the next best use of time.
C) the value of chatting with her friends.
D) zero since she does not pay her friends to talk to her.
B
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Use the above figure. A regulatory commission sets the maximum price this monopolist can charge at P1. If this monopolist were to produce, it
A) would produce Q4 output and generate losses. B) would produce Q4 output and generate profits. C) would produce Q2 output and generate losses. D) would produce Q2 output and generate profits.
Which of the following is a financial contract in which a firm agrees to repay the amount borrowed plus interest?
a. Corporate bond b. Certificate of deposit c. Municipal bond d. Stock