The adage, "There is no such thing as a free lunch," is used to
illustrate the principle that
Ed spends an hour studying instead of watching tv with his friends.
The opportunity cost to him of studying is
Caroline eats two bananas during a particular day. The marginal
benefit she enjoys from eating the second banana
Assume Diana buys computers in a competitive market. It follows that
a. Diana has a limited number of sellers to turn to when she buys a
b. Diana will find herself negotiating with sellers whenever she buys a
c. if Diana buys a large number of computers, the price of computers
will rise noticeably.
d. None of the above is correct.