Author Question: The lowest price Jacob will accept from Harold for a bushel of corn produced in his farm is 5 . The ... (Read 86 times)

mckennatimberlake · **on:** Jun 30, 2018

The lowest price Jacob will accept from Harold for a bushel of corn produced in his farm is 5 . The transaction will go through if:
a. Harold's valuation is less than Jacob's.
b. Harold's valuation is greater than 5.
c. Jacob's opportunity cost is greater than Harold's.
d. Jacob's opportunity cost is equal to Harold's.

Question 2

With expansion in the level of output, total fixed cost:
a. declines but remains positive.
b. increases.
c. falls to zero.
d. remains constant.
e. becomes negative.