Implicit costs are
A) the costs of using factors that a producer hires or rents.
B) the opportunity costs of using factors that a producer does not buy or hire but already owns.
C) costs that are taken into consideration by accountants.
D) costs that are variable in the short run and fixed in the long run.
Answer: B
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The points inside an economy's production possibilities frontier represent the combinations of goods that provide the greatest level of utility to the economy as a whole
a. True b. False Indicate whether the statement is true or false
A consumer with a limited income will maximize utility when each good is purchased in amounts such that the
A. marginal utility of each good in a bundle is maximized. B. total utility is the same for each good in a bundle. C. marginal utility per dollar spent on each of the final choices in a bundle is equal. D. marginal utility per dollar spent on each of the final choices in a bundle is maximized for each good.
Which is always TRUE at a firm's profit-maximizing rate of production?
A. Marginal Revenue = Marginal Cost B. Marginal Revenue > Marginal Cost C. The total revenue curve lies below the total cost curve. D. Total Revenue = Total Costs
Marginal cost refers to the incremental cost arising from a decision.
Answer the following statement true (T) or false (F)