If the marginal rent cost of moving from Apartment 1 to Apartment 2 is -$60, and marginal commuting cost of moving from Apartment 1 to Apartment 2 is $40:
A) moving from Apartment 1 to 2 will save the renter $60 more in rent and $40 more in commuting.
B) moving from Apartment 1 to 2 will cost the renter $60 more in rent but save $40 in commuting.
C) moving from Apartment 1 to 2 will cost the renter $60 more in rent and $40 more in commuting.
D) moving from Apartment 1 to 2 will save the renter $60 in rent but cost $40 more in commuting.
Assume that a firm wants to set up a factory. It has four different options. The rent of the factory in the four different locations and the time taken to transport the product from each location to the market is shown in the table below. The opportunity cost of time is $10 per hour.
Factory Location Monthly Commuting Time (hours) Monthly Rent ($)
Very Far 30 2,060
Far 25 2,100
Close 15 2,300
Very Close 5 2,500
D
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If a country begins to import a good,
a. it has a comparative advantage in producing that good b. it has a comparative advantage in consuming that good c. domestic consumers are made better off d. domestic producers are made better off e. both domestic consumers and domestic producers are harmed
For given inputs of labor and capital, if technology is better, labor productivity will be
a. higher. b. lower. c. unchanged. d. characterized by increasing returns to scale.