For spring break, Melanie will either stay home or go to Daytona Beach. At home, Melanie pays $10 per day for food and earns $90 a day at her job. At Daytona Beach, Melanie will stay with friends and so has no lodging cost
She will pay $20 per day for food. In terms of dollars, Melanie's opportunity cost per day of going to Daytona Beach is how much?
Melanie's opportunity cost of going to Daytona Beach is $100 per day. If she goes, she spends $10 extra for food and loses $90 income from her job, for a total opportunity cost of $100.
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Supply and demand shocks are two different categories of
a. fiscal shocks. b. monetary shocks. c. tax shocks. d. spending shocks. e. commodity shocks.
Suppose that Techno TV produces LCD televisions. At a price of $2,000 per television, Techno determines that its optimal output is 3,000 television sets per week. If prices are sticky and fears of a recession reduce demand for LCD televisions, we would
expect Techno to: A. reduce output in the long run. B. reduce output in the short run. C. raise prices in the short run to compensate for lost revenue. D. lower prices in the short run to offset the reduced demand.