Hans Can Do 4 Loads of Laundry Per Hour,and He

question 87

Multiple Choice

Hans can do 4 loads of laundry per hour,and he can type 6 pages per hour.Maria can do 12 loads of laundry per hour,and she can type 8 pages per hour.Hans' opportunity cost of typing one page is:

• A)12 loads of laundry.
• B)8 loads of laundry.
• C)3/2 of a load of laundry.
• D)2/3 of a load of laundry.
• E)impossible to compute without additional information.

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Definitions:

Market Price

The current market value at which an asset or service can be transacted.

Perfect Competition

A market structure characterized by a complete absence of rivalry among the individual firms. In this market, all firms sell an identical product, there are no barriers to entry or exit, and no single firm can influence the market price.

Standardized Product

A product that is uniform in quality and specifications across all production units, making it interchangeable with similar products.

Perfectly Competitive

A perfectly competitive market is characterized by many buyers and sellers, homogeneous products, free entry and exit, and perfect information.