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Pindyck/Rubinfeld, Microeconomics, Eighth Edition Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. If
her best alternative is unpaid, such as taking care of a loved one, she will now have to pay
someone else to do that job, and the amount she has to pay is her opportunity cost.
4. Suppose that labor is the only variable input to the production process. If the marginal cost of production is diminishing as more units of output are produced, what can you say about the Share with your friends: