Refer to Figure 2-2. What is the opportunity cost of one dozen roses?
A) 0.4 dozen orchids B) 2.5 dozen orchids C) 7.25 dozen orchids D) 16 dozen orchids
A
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Pick the false statement
A) It is possible for economic profit to be equal to accounting profit. B) It is possible for economic profit to be greater than accounting profit. C) It is possible for economic profit to be less than accounting profit. D) Economic profit can only occur under conditions of uncertainty.
Many economists believe that a nationalized firm tends to be inefficient because
a. it sets P = MC b. it makes economic profits c. tax revenues cannot be used to subsidize the firm d. managers have strong incentives to excel e. the government cannot go bankrupt
The net present value of $1,000 received in the future would
a. decline if the $1,000 were received sooner. b. increase if the delivery date for the $1,000 were set farther into the future. c. decrease if the interest rate fell. d. decrease if the interest rate rose.
In the short run:
A. the firm is free to change the amount of capital it uses. B. all inputs are variable. C. there are no variable inputs. D. at least one input is fixed.