Answered: In economics, what is the term for the…

In economics, what is the term for the highest-valued alternative that must be sacrificed when making a decision? A. Marginal cost B. Opportunity cost C. Sunk cost D. Average cost

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: The Cost Of Production

Section: Chapter Questions

Problem 2QR

See similar textbooks

Related questions

Q: Consider the following two mutually exclusive investment projects: 11 0 1 2 3 4 5 A Salvage Value…

A: This question asked us to determine the better choice between the projects using the Minimum…

Q: Keynes (1936) argued that, from a policy perspective, everything that can be achieved by a nominal…

A: Macroeconomic analysis provides a thorough picture of an economy's financial situation. It detects…

Q: ‘tax expenditure’

A: A key component of macroeconomic management, and fiscal policy is the deliberate manipulation of…

Q: A commercial airline is analyzing the price scale for round trip flights between New York and…

A: To find the coefficient of correlation between the ticket price and the number of customers…

Q: How does an increase in the minimum wage affect employment in the short run according to…

A: The inquiry you've presented relates to a basic discussion in economics concerning the impact of…

Q: 7. Critical analysis Q16 Suppose that the Federal Reserve purchases a bond for $300,000 from Reggie…

A: The reserve ratio describes the percentage of a bank's deposits that must be held in reserve, as…

Q: What is the main characteristic of a perfectly competitive market? A. Many sellers with…

A: In financial matters, a perfectly competitive market is a glorified type of a market structure. This…

Q: We have studied the 2-period alternating offer bargaining model with constant costs of delay. In…

A: Game theory influences many elements of modern civilization, from pricing tactics and efficacy to…

Q: What is the primary measure of income inequality that represents the dispersion of income among a…

A: Income inequality is a basic idea in financial matters and social examinations, addressing how…

Q: Assume that the MPC is 0.8. Assume that there is a multiplier effect and that the total crowding-out…

A: Marginal propensity to consume (MPC) : It refers to the fraction of an additional unit of income…

Q: You run a firm using two rented machines, the cost of rent is 100 each. Wage per worker (L) is 200.…

A: The objective of the question is to calculate the profit of the firm given the cost of rent, wage…

Q: (Figure: Profit-Maximization for Fabulous Finn's Flower Firm in the Short Run) Use Figure: Profit-…

A: MC stands for Marginal Cost, which is the additional cost incurred by producing one more unit of…

Q: product is P = 78-15Q, where Q = Q₁ + Q₂. The marginal cost associated with producing in the two…

A: A monopolistic market structure features a large number of customers and one producer of a special…

Q: Scenario 21-3 Scott knows that he will ultimately face retirement. Assume that Scott will…

A: Saving alludes to the demonstration of setting to the side a part of one's income or resources for…

Q: E76. Which one of the following best describes the term “Merchant Discount Rate” sometimes seen in…

A: Banks refer to the financial institutions that facilitate various services to their customers. It…

Q: You manage a company that competes in an industry that is comprised of 3 equal-sized firms that…

A: An industry with three firms of equal size producing comparable products can be classified as an…

Q: Price ($ per car) 39,500 20,000 17,000 3,000 Marginal social side benefits from domestic production…

A: The tariffs are considered to be one of the government restrictions implied to provide support to…

Q: Look at the figures below representing pollution reduction with plants A and B. The government…

A: Marginal Cost (MC): The additional cost of producing one more unit of a good or service.Marginal…

Q: The Beer Standard. In 1999, The Economist reported the creation of an index, or standard, for the…

A: A local currency relative to its real purchasing power is said to be overvalued when the implied…

Q: Price $ 20 18 16 14 12 10 Number of Baskets Sold 12 20 25 28 The table shows the demand schedule…

A: In this question a monopolist wants to maximize her profits, we are given with the demand schedule.A…

Q: If the inverse market demand function facing a duopoly is what are the Nash-Cournot equilibrium…

A: The Cournot-Nash equilibrium refers to the situation where firms independently choose their…

Q: Suppose Indonesia drastically decreases the size of their import quota for red onions. Use the…

A: Exchange rate:It is the rate at which currencies are exchanged for another currency. It affects the…

Q: Which of the following is a characteristic of a fixed exchange rate system? A. Exchange rates…

A: The idea of a fixed exchange rate system is a fundamental part of global finance and money. It…

Q: Suppose there are two firms in a market, each with marginal costs equal to 0. Due to regulations,…

A: Making business decisions and allocating resources in the face of business issues is part of…

Q: Suppose that there are 5 sources of emissions in the economy. The marginal abatement cost of each…

A: “Since you have posted a question with multiple sub-parts, we will provide the solution only to the…

Q: The inflation rate in India was recorded at 4. 70 percent in May of 2013. Inflation Rate in India is…

A: This passage primarily discusses the state of inflation and economic policies in India around May…

Q: Bureau of Economic Analysis in the USA is responsible for construction and maintenance of national…

A: National income estimates play a pivotal role in gauging a nation's economic well-being, offering…

Q: Bank pass book is also known as

A: A particular kind of financial organization known as a bank provides a range of financial services…

Q: Bonds issued by corporations and exposed to default risk are classified as A. corporation bonds B.…

A: Bonds are debt securities that represent a loan made by an investor to a borrower. When one…

Q: Explain the concept of price elasticity of demand. How is it measured, and why is it important?

A: Price elasticity of demand is a central concept in financial matters, assuming a critical role in…

Q: A local government is seeking to impose a specific tax on hotel rooms. The price elasticity of…

A: The price elasticity of demand refers to the responsiveness of quantity demanded to the changes in…

Q: Farm Management The Smith family has owned a 640-acre farm for several generations. However,…

A: The objective of the question is to provide advice to the Smith family on how to maximize their net…

Q: The Raleigh City Council has just voted to levy a sizable per-garage-space tax on single family…

A: The housing sector, which includes real estate purchase, auctions, and building, is critical to the…

Q: utility function

A: A Budget constraint represents the bounds at the intake picks of a character or a household based on…

Q: Calculate the chain-weighted Real GDP for Year 3, using Year I as the base year. Here are all the…

A: The chain-weighted method is one of the measures that is used to calculate the value of the GDP.…

Q: Assume the following model of the expenditure sector: AD=C+I+G+NX C = 420 + (4/5)YD YD=Y–TA+TR TA =…

A: Aggregate demand is the relationship between the price level and the quantity of real GDP demanded.…

Q: In perfect competition, why is a firm's marginal revenue curve also the demand curve for the firm's…

A: In a perfectly competitive firm there are huge number buyers and sellers in the market alongside…

Q: For example, if the total cost I producing three units of output is $ 2,471 and the total cost of…

A: Total cost is the sum of fixed cost and variable cost.Fixed cost is the cost that doesn't changes…

Q: 39) A student wrote: "A production quota is inefficient because it results in overproduction. At the…

A: Marginal cost:Marginal cost is the expenditure incurred for marketing that one unit, whereas…

Q: Assume an open economy with a fixed exchange rate and a credible inflation target that is in a…

A: Macroeconomic analysis provides a comprehensive picture of the financial status of an economy. It…

Q: The following table reports transactions that occurred in Jacksonville, FL. Item Bottles of Wine…

A: National income can be calculated using three different methods, expenditure method, income method…

Q: When plotting the demand curve (with price in dollars on the y-axis and quantity in bottles on the…

A: Demand curve represents the quantity demanded corresponding to different price level. It is upward…

Q: Answer the question based on the following information for a bond having no expiration date: bond…

A: A proportion of the amount charged on borrowers' money is referred to as the interest rate. The…

Q: Compare and contrast perfect competition and monopoly market structures. What are their key…

A: Understanding different market structures is key to getting a handle on how economies function and…

Q: Use the information in the following table on labor productivities in Spain and Italy to answer…

A: "As stated by the client, the solution to part f is only provided."An economy always looks to…

Q: Explain the concept of consumer surplus and producer surplus. How are these measures related to…

A: Understanding market efficiency requires a profound jump into a few principal monetary concepts,…

Q: 4. Supply and demand for loanable funds The following graph shows the market for loanable funds in a…

A: Loanable funds is defined as the theory for determining rate of interest in the market. The demand…

Q: Suppose that we have numerical representations (V1, ... , VI) for the preferences (≻i) of our I…

A: Under a weighted utilitarian social welfare function, specific weights are assigned to the utilities…

Q: 1. Use economic analysis to evaluate the government-operated firm as an alternative to monopoly.…

A: “Since you have posted multiple questions, we will provide the solution only to the first question…

Q: Suppose that the White House decides to sharply reduce military spending without increasing…

A: Aggregate demand (AD) is the total demand for goods and services in an economy at a given price…

Question

In economics, what is the term for the highest-valued alternative that must be sacrificed when making a decision? A. Marginal cost B. Opportunity cost C. Sunk cost D. Average cost

Video Video

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction to the Concept

VIEW

Step 2: Correct Option with Summary

VIEW

Step 3: Discussion of Incorrect Options

VIEW

Solution

VIEW

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

what is cost
while taking decisions there are different kinds of constraints related to resources, time,rules,physical realityetc leads to the matter of choice.how will you explain the whole situation in terms of cost
Write a topic on economies of scale, economies of scope, or learning curves.
Can you give an example of cost-savings?
What does the Cost basis generally include?
cost curve shifters
What is the nature of an opportunity cost? a It is always variable. b It is a potential benefit. c It is included as part of cost of goods sold. d It is a sunk cost.
Opportunity cost is best defined as Select one: a. the amount given up when choosing one activity over the next best alternative. b. the amount given up when choosing one activity over all other alternatives. c. the amount that is given up when choosing an activity that is not as good as the next best alternative d. the opportunity to earn a profit that is greater than the one currently being made.
On which factors does total cost for heating or air conditioning a building depends?
The average total cost of producing shoes will, as businesses increase production. Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. always increase always decreases eventually increase
Write the types of Strategic Engineering Economic Decisions?
1.How does a business owner applying the concept of marginal costs decide how much to produce? For example, how did the driver determine how many hours to drive each day?