Sadie is getting ready to go to work where she earns $70 a day as a day laborer. Her friend Caroline calls her and asks her to go swimming with sharks for the day. Sadie decides to go with her. Sadie's choice implies that her opportunity cost of working is:
A. less than $70.
B. greater than $70.
C. equal to $70.
D. Cannot say without more information.
B. greater than $70.
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The profit-maximizing monopolist, faced with a negative-sloping demand curve, will always produce:
a. at an output greater than the output where average costs are minimized b. at an output short of that output where average costs are minimized c. at an output equal to industry output under pure competition d. a and c e. none of the above
In setting reserve requirements, the Fed divides deposits into which of the following two broad categories?
a. NOW accounts and ATS accounts b. savings accounts and non personal time accounts c. transaction accounts and non personal time accounts d. check able deposits and transaction accounts