Which of the following statements is true?
a. Economic profits ignore implicit costs
b. Economic profits include implicit costs.
c. Accounting profits include all of the opportunity costs.
d. Economists consider sunk costs in their decision making.
b
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As we move down a straight-line demand curve, the price elasticity becomes
A. larger. B. smaller. C. larger and then smaller. D. smaller and then larger.
Explain how the standard of living of the average person in an economy can increase?
What will be an ideal response?
If there is an increase in world taxes ________
A) domestic investment would fall B) net exports would increase C) the domestic interest rate would go down D) all of the above E) none of the above
Many states use container redemption programs to encourage reuse of glass bottles and other recyclable containers
Suppose a state has a current redemption program that imposes a 10-cent per container fee, and then the state increases the fee to 15 cents per container. What is the expected impact of this change on the optimal quantity of unredeemed (scrapped) containers? A) Optimal quantity increases B) Optimal quantity decreases C) Optimal quantity remains unchanged D) We cannot determine the outcome of this policy change without having more information