1 In 1985 Alice paid $20000 for an option to purchase ten acres of land By paying the $20000 she bought the right to buy the land for $100000 in 1992 When she acquired the option in 1985 the land was

A) Yes
B) Farm the land for another year and sell to XYZ Corporation.
B) is incorrect because the original price paid for the shares is a sunk cost and should have no bearing on whether the shares should be held or sold.
B) II only
A) I is true, and II is false.
B) Average fixed cost
B) $25
A) falling.
D) $45,000 per year
C) A salaried manager who has a three-year employment contract
B) I is true, and II is false.
E) None of the above is necessarily correct.
D) none of the above
C) I and II are both true.
B) the firm could produce 3 more units of output if it increased its use of labor by one unit (holding capital constant).
C) could reduce the cost of producing its current output level by employing more labor and less capital.
B) the ratio of the amount of chemicals used to the amount of labor used equals the ratio of the marginal product of chemicals to the marginal product of labor.
B) follow the 45-degree line from the origin.
C) there are diseconomies of scale.
C) I is false, and II is true