A firm's explicit costs are
a. the opportunity costs of the owners
b. its depreciation costs
c. the money paid for use of inputs
d. the foregone rents on owner occupied office space
e. irrelevant to the determination of economic profit
C
You might also like to view...
Real GDP
A) fluctuates from year to year but is always below potential GDP. B) fluctuates around potential GDP. C) grows at a constant 3 to 4 percent per year. D) can be called potential GDP when it is adjusted for price changes.
What is the economic criterion most often used to compare living standards across countries?
a. Real GDP growth. b. Unemployment rate. c. Incidence of AIDS. d. Rate of population growth. e. Real per capita GDP.
Governments should tax a market with an inelastic demand if the purpose of the government is to: a. increase its tax revenue
b. discourage the consumption of a good. c. increase the deadweight loss from the tax. d. discourage the production of a good.
A strike, or the threat of one, is most likely to be effective when
a. demand for the firm's product is strong. b. foreign competition for the product is high. c. the firm has a high product inventory. d. demand for the product produced by the union workers is highly elastic.