In an attempt to boost enrollment, in January, 1996, a private college in Iowa offered free tuition for graduating high school seniors from the county where it is located. For students who accepted the offer, how did this offer affect the opportunity cost of attending college?
a. The opportunity cost did not change, since lost earnings were still a factor.
b. The opportunity cost became zero for the typical student.
c. The opportunity cost was very low, because the only cost was for books and supplies.
d. The opportunity cost did not change, since tuition was not a factor in computing opportunity cost.
e. The opportunity cost was lower than if tuition was charged, but there was still a cost.
e
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Which of the following is true
a. Increasing output always leads to increase in profits b. Increasing outputs increase profits if price is above marginal cost c. Increasing output increases profits if price is lea than marginal costs d. Increasing output always decreases profits
Which of the following is NOT a possible resolution of externalities?
a. Coasian bargaining b. regulatory directives c. taxes and subsidies d. cap and trade e. all of the above are possible resolutions of externalities