If a business owner uses a warehouse he owns to store his inventory, then his total costs will be less than if he rented warehouse space from someone else.
Answer the following statement true (T) or false (F)
False
Total costs include explicit as well as implicit costs. If a business owner uses his own warehouse, the market value of the warehouse is an implicit cost. If he rents the warehouse, the value will be an explicit cost. Either way, the cost of the warehouse will be included in total costs.
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An equilibrium in the presence of price floors can be restored by increased consumer effort to obtain scarce goods. ?
Answer the following statement true (T) or false (F)
Explain how gross investment, depreciation, net investment, and the capital stock are related
What will be an ideal response?
In the context of insurance, everyone typically has to pay a higher premium because of:
A. risk pooling. B. diversification. C. risk aversion. D. adverse selection.
What is the difference between real and nominal GDP? If the president of the United States (or your instructor) asked you to evaluate the economy over the past five years, which one would you use and why?