An explicit cost occurs when an actual out-of-pocket payment is made by a firm
a. True
b. False
Indicate whether the statement is true or false
True
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Which of the following is true regarding the game in Scenario 13.5?
A) Only Bull Meat has a dominant strategy. B) Only Deer Meat has a dominant strategy. C) Both companies have a dominant strategy: expand West. D) Both companies have a dominant strategy: expand South. E) Neither company has a dominant strategy.
Suppose a large country experiences economic growth which results in an increased willingness to trade. The country's terms of trade will ________ because the increase in demand for imports will cause the price of its exports to ________ relative to the price it has to pay for its imports.
A. worsen; fall B. worsen; rise C. improve; rise D. improve; fall
If the quantity demanded of milk is 55,000 and the quantity supplied of milk is 80,000, then:
A. there is an excess supply of 25,000 units of milk. B. the price of milk will tend to rise to clear the market. C. consumers get the milk they want so market equilibrium exists. D. there is an excess demand of 25,000 units of milk.
Which of the following is FALSE about public-sector decision making?
A. The price charged to consumers is often less than its full opportunity cost. B. Decisions are based on majority rule. C. Incentives play a role in decision making. D. Decisions involve no opportunity cost.