Accounting profit will always be
A) more than economic profit.
B) equal to sunk costs.
C) less than economic profit.
D) equal to implicit costs.
A
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The major dilemma facing Boeing and Airbus is the
A) fact that neither will respond to the behavior of the other. B) certainty surrounding the reaction of each firm to the behavior of the other firm. C) fact that if each firm separately tries to maximize its profit, it might wind up with less profit that otherwise. D) competition from other firms that drives their economic profit to zero. E) fact that when they collude to maximize their profit, the other firm's profit might be larger than its profit.
With respect to the market clearing price and the equilibrium quantity of good X, increases in the demand for and the supply of good X will definitely
A) increase the market clearing price of good X but have an uncertain impact on the equilibrium quantity of X. B) reduce the market clearing price and the equilibrium quantity of good X. C) increase the market clearing price and the equilibrium quantity of good X. D) increase the equilibrium quantity of good X but have an uncertain impact on the market clearing price of X.
Moe has a big exam tomorrow. He considered studying this evening, but decided to hang out with Curly instead. If neither activity involves any explicit costs, and Moe always chooses rationally, it must be true that:
A. Moe gets less benefit from spending time with Curly than from studying. B. Moe gets more benefit from spending time with Curly than from studying. C. the opportunity cost of studying is greater than the value Moe gets from spending time with Curly. D. the opportunity cost of studying is less than the value Moe gets from spending time with Curly.
The relationship between quantity supplied and the price of output is such that
A. an increase in quantity will automatically lead to a reduction in price. B. an increase in price will lead to an increase in quantity supplied. C. quantity will decrease as the number of firms increases. D. an increase in price will produce an inward shift in the supply curve.