The implicit cost incurred by a firm to use its resources to produce its output is the firm's
A) total cost.
B) explicit cost.
C) opportunity cost.
D) accounting cost.
Answer: C
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When looking at economic growth in a country, the distribution of output and income
A) is shared equally. B) is skewed toward the lowest quintile of the population. C) generally follows predictable patterns. D) is not taken into consideration.
Suppose that the money multiplier is 4. If the monetary base decreases by $2 million, the quantity of money will
A) increase by $8 million. B) increase by $500,000. C) decrease by $8 million. D) decrease by $500,000.
Prices are sticky as a result of
A. market competition. B. rational inattention. C. rational expectations. D. frequent information updates.
Explain why the long-run total cost curve, not the short-run total cost curve, shows the lowest cost of producing any level of output. Is there an exception?
What will be an ideal response?