Joanne rents out her apartment in Seattle to Alice as she is moving to Dallas for the next three years. Which of the following statements must be true?
a. Alice's valuation of the apartment is higher than Joanne's opportunity cost of renting it.
b. Joanne's valuation of the apartment is higher than Alice's.
c. This transaction creates no economic value for Alice.
d. Alice's valuation of the apartment is lower than Joanne's opportunity cost of renting it.
Question 2
Assume that for 20 bicycles, the total fixed cost is 100 and the total variable cost is 300 . Then the average fixed cost and the average variable cost are:
a. 5 and 10 respectively.
b. 5 and 15 respectively.
c. 10 and 15 respectively.
d. 15 and 10 respectively.
e. 10 and 5 respectively.
Circumduction Circumduction–Moving a body part in a circular motion.
Rotation Rotation–Moving a body part around a central axis.
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