You Decide to Drive Your Car on a Long Road

question 125

Multiple Choice

You decide to drive your car on a long road trip of 1,500 miles.The opportunity cost of driving your car:

• A) is the amount of money spent on gas.
• B) is zero because the car is paid for.
• C) includes lost wages you could have earned instead of driving.
• D) the total expenses of the trip in the end.

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Definitions:

Duopoly

A market structure dominated by two firms, each of which has significant control over the market price.

Demand Curves

Graphical representations showing the relationship between the price of a good and the quantity of that good consumers are willing and able to purchase at different prices.

Marginal Revenue Curve

A graphical representation showing how marginal revenue varies as the quantity of output sold changes, typically downwards sloping for firms in imperfectly competitive markets.

Collude

To cooperate with others, often secretly, to deceive or gain an unfair advantage in the market.