Author Question: The opportunity cost of producing a bicycle refers to a. the out-of-pocket payments made to produce ... (Read 57 times)

tfester · **on:** Jul 1, 2018

The opportunity cost of producing a bicycle refers to
a. the out-of-pocket payments made to produce the bicycle.
b. the value of the goods that were given up to produce the bicycle.
c. the bicycle's retail price.
d. the marginal cost of the last bicycle produced.

Question 2

Suppose MPL = 40 and MPK = 20 and the rental rate on capital is 10 . If the level of production is currently efficient, the wage rate must be
a. 10
b. 5
c. 20
d. 40