Author Question: What is the opportunity cost of producing capital goods such as a new road? What will be an ideal ... (Read 116 times)

stock · **on:** Jun 29, 2018

What is the opportunity cost of producing capital goods such as a new road?

What will be an ideal response?

Question 2

List four sources of market failure.

What will be an ideal response?

karlss · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

The opportunity cost of producing a new road can be measured by the next best alternative that could have been produced with the same resources.

Answer to Question 2

(1.) Imperfect competition
(2) Externalities.
(3.) Production of public goods.
(4.) Imperfect information.