Which of the following would be categorized as an implicit cost?
a. not being able to spend your $10,000 savings if you sink the money in your business
b. the cost of purchasing supplies for your house-cleaning business
c. the cost of purchasing auto insurance for your dry-cleaning delivery business
A) a only B) a and c only C) b and c only D) all of the above
A
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Suppose a cancer patient decides to forsake weekly chemotherapy treatments in order to spend more meaningful, loving time with her friends and family. In cases where patients refuse treatment,
A) there are indeed substitute for chemotherapy, such as time with family. B) the patient is behaving irrationally. C) the patient doesn't know what is in her long-run best interest. D) the patient fails to see that chemotherapy is a better substitute than time with the family.
Which of the following statements is false?
a. In a competitive market, the price mechanism encourages conservation of a depletable resource. b. As the price of a depletable resource rises, its known reserves often increase. c. Prices of depletable resources have risen in the twentieth century primarily because resource producers have exercised monopoly or oligopoly power. d. Shortages of depletable resources occur primarily when governments or others interfere with the price mechanism.
When the government eliminates artificial barriers to entry:
A. firm profits will rise. B. prices to consumers will likely decrease. C. competition in the market will decrease. D. All of these will occur.
In the above figure, the competitive firm will employ the quantity of labor
A. equal to Lb. B. equal to Lc. C. greater than Lc. D. less than Lb.