You withdraw some of your savings to invest in a new business ...

[tuffie]

You withdraw some of your savings to invest in a new business venture. Which of the following statements is true?
 a. The return you will earn from this new investment is your opportunity cost.
  b. The interest rate you would have earned in the bank is higher than the return from this investment.
  c. The return you expect to earn from this new investment must exceed your opportunity cost.
  d. The return you expect to earn from this new investment must equal your opportunity cost.

Question 2

Many agricultural products, such as wheat, are produced by thousands of different producers that grow essentially the same product. The market structure that best describes such a model is:
 a. perfect competition.
  b. monopoly.
  c. monopolistic competition.
  d. oligopoly.
  e. monopsony.

[swimkari]

Answer to Question 1

C

Answer to Question 2

a

[tuffie]

Excellent

[sailorcrescent]

TYSM