The city of Austin can buy roads or light rail. If 10 miles of roads cost $1 million and 2 miles of light rail cost $10 million, what is the city's opportunity cost of 1000 miles of roads?

If a positive permanent supply shock were to occur, the resulting equilibrium would be a:

A. higher level of output at lower prices. B. lower level of output and prices. C. higher level of output and prices. D. lower level of output at higher prices.

Refer to the data provided in Table 9.1 below to answer the question(s) that follow.   Table 9.1 Refer to Table 9.1. If the market price is $15, this firm should produce ________ units of output to maximize profits.

A. three B. four C. five D. six