From the manager's perspective:
A) it is important to treat implicit costs as explicit in order to make sound strategic decisions.
B) implicit costs are simply a theoretical construct and should be ignored in the decision-making process.
C) only explicit costs matter because accounting profit is based on explicit costs.
D) there is no difference between implicit and explicit costs. As such, treating implicit costs as explicit would result in double counting and an overstatement of total costs.
A
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What is the "quantity demanded"?
A) the amount of a good people desire B) the amount of a good people are able and willing to buy during a specific time period and at a given price C) the amount of a good people are able and willing to buy at all possible prices D) the maximum amount of a good that can be consumed during a specific time period E) the minimum amount of a good that people are willing to buy during a specific time period and at a given price
Martha's Cleaning Services is a perfectly competitive firm that currently cleans 30 offices a week and charges $20 per office, which is the going market price. Martha's marginal cost is $15
What should Martha do to increase her economic profit? Clean more offices? Raise her price? Explain your answer.
Refer to Figure 4-8. What is the value of consumer surplus after the imposition of the ceiling?
A) $120,000 B) $230,000 C) $270,000 D) $430,000
When investors become irrationally optimistic that an asset's price will continue to rise, it causes a financial bubble to:
A. become doubted by most serious investors. B. start to inflate. C. be on the verge of bursting. D. burst.