The Opportunity Cost of Going to College Includes

question 129

Multiple Choice

The opportunity cost of going to college includes:

• A) both tuition and the value of the student's time.
• B) tuition, but not the value of the student's time, which is a monetary cost.
• C) neither tuition nor the value of the student's time, since obtaining a college degree makes one's income higher in the future.
• D) neither tuition nor the value of the student's time, at least at state-supported universities and colleges.

Understand the concept of monopolies and how they differ from perfect competition.

Analyze the effects of monopolies on consumer surplus, producer surplus, and overall welfare.

Understand how monopolists determine production levels and pricing.

Evaluate the impact of patent protection on market competition.

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Definitions:

Machine-Hours

The total number of hours that machinery is in operation during a specific period, often used as a basis for allocating manufacturing overhead.

Markup

The amount added to the cost of goods to cover overhead and profit when determining the selling price.

Selling Prices

The amounts of money charged to customers in exchange for goods or services.

Plantwide Predetermined Manufacturing Overhead Rate

A single overhead rate calculated by dividing total estimated manufacturing overhead costs by an estimated allocation base, used across an entire plant or facility.