Which of the following statements about implicit costs is true?
A. They measure the forgone opportunities of the firm's owners.
B. They exceed explicit costs.
C. They are always fixed.
D. They do not enter into the calculation of economic profit.
Answer: A
You might also like to view...
One of the assumptions of the Gordon Growth Model is that dividends will continue growing at ________ rate
A) an increasing B) a fast C) a constant D) an escalating
In the Solow model, the steady-state capital—labor ratio will decline if
A) the saving rate per worker increases. B) the consumption rate per worker declines. C) population growth increases. D) productivity increases.
According to the life-cycle hypothesis, as people grow older ________
A) their wealth grows before and after retirement B) their wealth declines before and after retirement C) their wealth grows before retirement, then declines after retirement D) their wealth falls before retirement, then rises after retirement
The presence of large sunk costs often serves as a naturally imposed barrier to entry.
Answer the following statement true (T) or false (F)