Author Question: Tim's opportunity cost of selling his car is 20,000 . Rebecca, who is a likely buyer, values that ... (Read 116 times)

jake · **on:** Jun 30, 2018

Tim's opportunity cost of selling his car is 20,000 . Rebecca, who is a likely buyer, values that car at 25,000 . Calculate the economic value this transaction can create if Rebecca pays 23,500 for Tim's car.
a. 1,500
b. 5,000
c. 3,500
d. 2,000

Question 2

Fixed costs are costs paid for:
a. medical reimbursements and health insurance of workers.
b. obsolete plant and equipment not used anymore.
c. plant and equipment in the long run.
d. hiring temporary workers.
e. resources that do not change with changes in output.