Explicit costs include:
A. variable costs.
B. fixed costs.
C. out-of-pocket costs.
D. All of these are included in explicit costs.
Answer: D
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It is possible for the absolute price of a good to rise at the same time that the good's relative price is falling
Indicate whether the statement is true or false
The external marginal cost of producing coal is MCexternal = 6Q while the internal marginal cost is MCinternal = 4Q. The inverse demand for coal is given by P = 120 ? 2Q. If the government taxed output at $2 per unit, what would a competitive industry produce?
A. 20 B. 15 C. 10 D. 8
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, as the economy moves from Point D to Point B, the opportunity cost of hybrid cars, measured in terms of motorcycles,
A. initially increases, then decreases. B. increases. C. remains constant. D. decreases.
In cases where there is low productivity in extraction methods for a common resource,
A. the resource becomes nonrival in consumption. B. overuse is more likely. C. overuse is less of a problem. D. the resource becomes excludable.