Author Question: If a firm buys a specialized metal stamping machine that will last 4 years for 125,000 and cannot ... (Read 122 times)

Ebrown · **on:** Jul 1, 2018

If a firm buys a specialized metal stamping machine that will last 4 years for 125,000 and cannot resell it, the opportunity cost is

A) 0.
B) 31,250.
C) 125,000.
D) 93,750.

Question 2

Max has allocated 100 toward meats for his barbecue. His budget line and an indifference map are shown in the above figure. Which of the following best describes Max's preferences?

A) d > b > e
B) d = b = e
C) a = b > c
D) a = b > e