Exam 6: Costs

Sue is taking an accounting job she was offered that pays $67,000 per year. She also had two other offers, a sales job paying $71,000 per year and a marketing job paying $65,000 per year. What is Sue's opportunity cost of taking the accounting job?

Learning by doing is represented by

A change in relative factor prices will always result in

Economies of scope exist between book publishing and magazine publishing if

Travel websites such as Travelocity tend to offer reservation services for multiple travel modes. This is because

Which of the following is most likely to have declining opportunity costs?

A pizza parlor's rent is

One problem with measuring a durable good's cost is

Learning by doing will result in

Four years after graduating from college you must decide if you want to go on as an accountant (your college major)or if you want to make a career change and become a singer. The cost of your education will matter for your decision.

Assume Congress decides that oil companies are making too much profit and decides to increase the tax on oil companies for each gallon of gasoline produced. This would

Suppose a firm can only vary the quantity of labor hired in the short run. An increase in the cost of capital will

If the cost of capital decreases the isocost line will

A firm can minimize cost by

The long run average cost curve may initially slope downward due to

Average fixed cost (AFC)

Suppose the total cost of producing T-shirts can be represented as TC = 50 + 2q. The average cost of the 5th T-shirt is