Author Question: Suppose the seller's opportunity cost of producing shirts is 12 and the buyer's valuation is 22 . If ... (Read 46 times)

nelaaney · **on:** Jun 30, 2018

Suppose the seller's opportunity cost of producing shirts is 12 and the buyer's valuation is 22 . If the seller gains 2 more than the buyer from this transaction, what is the price at which the good is exchanged between the two parties?
a. 17
b. 18
c. 19
d. 20

Question 2

According to economic theory, the difference between the long run and the short run is:
a. about two months.
b. about two years.
c. not relevant for executive decision makers.
d. strictly theoretical so that in practice there is no difference between them.
e. the ability for a firm to vary all resources.