Author Question: Tom is going to quit his job to pursue his PhD in economics, which will take him 6 years to ... (Read 32 times)

ss2343 · **on:** Jul 1, 2018

Tom is going to quit his job to pursue his PhD in economics, which will take him 6 years to complete. He currently makes 55,000 per year as a high school teacher.

While going to school, he will receive a stipend of 24,000 per year plus 6,000 per year to help cover food and rent. His living expenses are the same regardless of what he does. What is Tom's opportunity cost of pursuing his PhD? A) 150,000
B) 180,000
C) 186,000
D) 330,000

Question 2

Which of the following would force a monopoly to charge a lower price?

A) A new firm selling the same enters the market.
B) A new firm selling the same product locates close to the monopoly.
C) A new firm introduces a better substitute for the firm's product.
D) All of the above.