Author Question: The Nifty Gum Co has purchased a large parcel of land for 1 million. The company recently discovered ... (Read 86 times)

biggirl4568 · **on:** Jul 1, 2018

The Nifty Gum Co has purchased a large parcel of land for 1 million. The company recently discovered that the land is contaminated and is worthless to all possible buyers. The opportunity cost of the land is

A) 0.
B) 1 million.
C) some amount greater than 0 but less than 1 million.
D) equal to the cost of the factory that was planned to be built there.

Question 2

A ban on imports, a tariff, or a quota raises the price to domestic consumers. This means that consumers will buy less of the product at a higher price. The loss associated with this is called

A) production associated loss.
B) productive consumption loss.
C) consumption distortion loss.
D) consumer misperception loss.