Homework Clinic
Social Science Clinic => Economics => Topic started by: cartlidgeashley on May 25, 2020
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Question 1
What has to be given up to produce a good or service is its
◦ opportunity cost.
◦ marginal cost.
◦ explicit cost.
◦ implicit cost.
Question 2
Assume that a firm already owns a machine that has a total life of 20 years. The cost of using the machine for one year to produce good A is
◦ the value of one year's output of good A.
◦ the scrap value of the machine at the end of its life.
◦ the maximum the machine could have earned for the firm in some alternative use during the year in question.
◦ a tenth of what the firm paid for the machine in the first place.
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Answer 1
opportunity cost.
Answer 2
the maximum the machine could have earned for the firm in some alternative use during the year in question.
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Thank you