« previous next »

Author Question: Jake opens a pig farm in Idaho. To start his farm, he uses his entire 50,000 of savings from his ... (Read 128 times)

vicotolentino

  • Hero Member
  • *****
  • Posts: 552
on: Jun 29, 2018
Jake opens a pig farm in Idaho. To start his farm, he uses his entire 50,000 of savings from his savings account. The bank was paying him 2,500 interest on his saving. Explain why the 2,500 is one of Jake's costs.
 
  What will be an ideal response?

Question 2

In the figure above, the quantity of low-skilled labor employed is
 
  A) 2,000 hours per day.
  B) 4,000 hours per day.
  C) 5,000 hours per day.
  D) 7,000 hours per day.


duke02

  • Sr. Member
  • ****
  • Posts: 312
Reply #1 on: Jun 29, 2018
Answer to Question 1

When Jake provides the 50,000 to finance his farm's operations, he forgoes the 2,500 in interest. Thus the opportunity cost of the 50,000 is the interest income forgone and so the 2,500 is an opportunity cost of running the farm.

Answer to Question 2

C


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Glaucoma is a leading cause of blindness. As of yet, there is no cure. Everyone is at risk, and there may be no warning signs. It is six to eight times more common in African Americans than in whites. The best and most effective way to detect glaucoma is to receive a dilated eye examination.

Did you know?

To prove that stomach ulcers were caused by bacteria and not by stress, a researcher consumed an entire laboratory beaker full of bacterial culture. After this, he did indeed develop stomach ulcers, and won the Nobel Prize for his discovery.

Did you know?

Methicillin-resistant Staphylococcus aureus or MRSA was discovered in 1961 in the United Kingdom. It if often referred to as a superbug. MRSA infections cause more deaths in the United States every year than AIDS.

Methicilli ...
Did you know?

Street names for barbiturates include reds, red devils, yellow jackets, blue heavens, Christmas trees, and rainbows. They are commonly referred to as downers.

Did you know?

There are 20 feet of blood vessels in each square inch of human skin.

Upsetting the entire social order, the French Revolution removed the past as a sure guide to the ... Upsetting the entire social order, the French Revolution removed the past as a sure guide to the ...
To check for voltage at terminal 30, use a test light or a voltmeter. Start by connecting the ... To check for voltage at terminal 30, use a test light or a voltmeter. Start by connecting the ...
Effleurage to the entire area with moderate pressure as a finishing technique. Apply effleurage ... Effleurage to the entire area with moderate pressure as a finishing technique. Apply effleurage ...
Use friction to mobilize the entire scalp. Place the fingers on the scalp, and move the skin over ... Use friction to mobilize the entire scalp. Place the fingers on the scalp, and move the skin over ...
An ice-free summer opens the Arctic for exploration An ice-free summer opens the Arctic for exploration
Animated Changes in the ovary and uterus correlated with changing hormone levels. We start with the Animated Changes in the ovary and uterus correlated with changing hormone levels. We start with the
Video: Neuron Structure Animation

For a complete list of videos, visit our video library