Here Are Three Things You Could Do If You Do

question 34

Multiple Choice

Here are three things you could do if you do not attend your economics class: watch television with some friends (you value this at $25) ,read a good book (you value this at $17) ,or go to work (you could earn $20 during the economics class) .The opportunity cost of going to your economics class is

• A) $20,because this is the only alternative of the three where you would actually receive a monetary payment.
• B) $17,because this is the lowest valued alternative forfeited.
• C) $25,because this is the highest valued alternative forfeited.
• D) $62,because this is the total dollar sum of the three forfeited alternatives.

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Definitions:

Sherman Act

A landmark federal statute in the antitrust law of the United States, passed in 1890, which prohibits certain business activities that federal government regulators deem to be anti-competitive.

Alcoa Case

A 1945 case in which the courts ruled that the possession of monopoly power, no matter how reasonably that power had been used, was a violation of the antitrust laws; temporarily overturned the rule of reason applied in the U.S. Steel case.

Monopoly Structure

A market form where a single firm controls the entire market for a product or service, with no close substitutes.