Which of the following statements is FALSE about opportunity cost?
A) Cost is always foregone opportunity.
B) Opportunity cost is the next best alternative.
C) John wants a burger and fries. The concept of opportunity cost applies even though he has enough funds to buy both.
D) Opportunity cost exists only for goods with monetary values.
D
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Robinson Crusoe divides his time between catching fish and gathering fruit. Part of his production possibilities frontier is given in the above table
If Mr. Crusoe is on his PPF and he increases the amount of fruit he gathers from 56 to 90 pounds, the opportunity cost is A) 37 pounds of fish. B) 31 pounds of fish. C) 17 pounds of fish. D) 34 pounds of fruit. E) 90 pounds of fruit.
Marginal product equals 0 when:
A) average product equals zero. B) total product equals average product. C) average product reached its minimum value. D) total product reaches its maximum value.