If You Were Not Studying Economics, You Could Be Doing

question 28

Multiple Choice

If you were not studying economics, you could be doing one of the following: sleeping in (which you value at $5) , playing cards with your friends (which you value at $10) , or working (you would have earned an extra $8) . The opportunity cost of studying economics is therefore:

• A) $23.
• B) $10.
• C) $8.
• D) $5.

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Definitions:

Blocked Entry

A situation in which new firms are prevented from entering a market due to high barriers to entry, such as high startup costs or strict regulations.

Oligopoly

A market structure characterized by a small number of firms controlling the majority of market share, leading to limited competition.

Difficult

Requiring considerable effort or skill to accomplish, deal with, or understand.

Interdependence

The mutual reliance between two or more groups, organizations, or countries, where the actions of one affect the wellbeing of the others.