To obtain economic profits we start with accounting profits and subtract ___________.
Fill in the blank(s) with the appropriate word(s).
economic costs or implicit costs
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An industry characterized by only a few firms in the market is called: a. a monopoly
b. monopolistic competition. c. an oligopoly. d. perfect competition.
Economics is different from a "hard" science like physics because: a. economists abstract from reality in creating their theories
b. economics is easier to study than physics. c. economists must explain their theories to policy makers who lack formal mathematical training. d. economists cannot easily control all the variables that might influence human behavior.
The private cost of production includes the amount a firm pays for A. ?pollution, capital, and materials. B. ?labor, capital, and materials. Your answer is correct.C. ?labor, capital, and pollution. D. ?labor, pollution, and materials.
The private cost of production includes the amount a firm pays for
A.
?pollution, capital, and materials.
B.
?labor, capital, and materials.
Your answer is correct.
C.
?labor, capital, and pollution.
D.
?labor, pollution, and materials.
Answer the following statement true (T) or false (F)
1) The demand for a resource depends on its productivity and the market value of the product it is producing. 2) If two resources are complementary, a decrease in the price of one will reduce the demand for the other. 3) Other things equal, the less competitive the market in which a firm sells its product, the less elastic will be its resource demand curve. 4) If the substitution effect outweighs the output effect, an increase in the price of a substitute resource will increase the demand for labor.