Economic profit of a decision in question equals
A. accounting profit of the decision in question + its opportunity cost.
B. accounting profit of the decision in question ? accounting profit of the best available alternative.
C. accounting profit of the decision in question + its opportunity cost + overheads.
D. its opportunity cost + accounting profit of the best available alternative.
Answer: B
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The opportunity cost of funds is the interest that can be earned by lending the funds
Indicate whether the statement is true or false
In the above figure, if the interest rate is 2 percent per year, the ________ because ________
A) demand for money curve will shift; the quantity of money demanded is less than the quantity of money supplied B) demand for money curve will shift; the quantity of money demanded is greater than the quantity of money supplied C) interest rate will change; the quantity of money demanded is less than the quantity of money supplied D) interest rate will change; the quantity of money demanded is greater than the quantity of money supplied E) supply of money curve will shift; the quantity of money demanded is greater than the quantity of money supplied
A government regulation making it very difficult to fire workers will have what effect in the labor market?
a. Demand for workers will decrease. b. The number of people hired will increase. c. There will be no effect on the labor market. d. Companies will fire more people.
Figure 10-8
For the perfectly competitive firm in Figure 10-8, what is the long-run price and quantity?
a.
P = 4, Q = 150
b.
P = 9, Q = 200
c.
P = 10, Q = 200
d.
P = 5, Q = 150