ECN 104

Suppose Adam is deciding what mode of transportation to take to get to work in the morning. If Adam decides to take a taxi, which of the following is an explicit cost of his decision? Question 1 options: The loss of exercise he gets when he walks to work (assume exercise gives him positive benefit) The $2.50 it costs to ride the subway. The value he gets from commuting with his wife who also takes the subway None of the above are explicit costs ...

1. Suppose Adam is deciding what mode of transportation to take to get to work in the morning. If Adam decides to take the subway, which of the following is an explicit cost of his decision? Answer: the $2.50 it costs to ride the subway 2. Suppose a firm has annual revenue of $600,000 from producing cars. Alternatively, the firm could produce only the Engines and earn revenue equal to 100,000. Assume that the firm's annual raw materials costs are equal to 400,000 and that the rent it pays...