Opportunity cost of good or activity is defined as the:

Value of the next best aernative.

Dollar

price paid for the good.

Dollar cost of producing the good.

All of the above

Question 6

Some farmland can be used to produce either rice or corn (i.e. two products share the same input). If price of rice decreases, then the

the supply of rice should increase.

the supply of corn should increase.

the demand of corn should increase.

the quantity demanded of rice should decrease.

Question 7

Which of the following is a perfectly competitive firm’s supply curve?

Competitive firms have no supply curve.

Its marginal cost curve.

The market price.

Its average total cost curve.

Finance