If the opportunity cost of time is ________, and an individual ...

[Mimi]

If the opportunity cost of time is ________, and an individual spends ________ commuting every month, his opportunity cost of commute is 100 every month.
 
  A) 5 per hour; 10 hours
  B) 8 per hour; 20 hours
  C) 10 per hour; 10 hours
  D) 12 per hour; 5 hours

Question 2

Are the owners of taxicabs in New York City earning large profits because the city severely restricts the number of licenses?
 
  A) No, because the city also regulates fares.
  B) No, because the cost of owning a license absorbs the potential profit.
  C) Yes, because the number of licenses has not been increased for 50 years.
  D) Yes, because if they were not the number of taxicabs would decline and profits would rise.
  E) We cannot tell because profit arises from uncertainty.

[Cnarkel]

Answer to Question 1

C

Answer to Question 2

B

[Mimi]

TYSM

[at]

Excellent