The opportunity cost of an activity is
A) the dollar cost to engage in the activity.
B) the value of the resources needed to conduct the activity.
C) the same for all who participate in the activity.
D) what you sacrifice to engage in the activity.
D
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When government action leads to inefficiency, it is known as
A) government failure. B) government as usual. C) lack of government trust. D) politics.
At Revolution Doughnuts in Fort Collins, Colorado, a cup of coffee or a doughnut is $1. Suppose Hannah loves going to Revolution Doughnuts
Currently, her marginal utility per dollar from doughnuts is 14 and her marginal utility per dollar from coffee is 10. Is Hannah maximizing her total utility? A) No, she needs to buy more doughnuts and less coffee. B) No, she needs to buy more coffee and fewer doughnuts. C) Yes, she is maximizing utility. D) No, she needs to buy fewer doughnuts and less coffee.