Monetary payments a firm makes to pay for resources are called
A. explicit costs.
B. implicit costs.
C. opportunity costs.
D. normal profit.
Answer: A
You might also like to view...
Explain why in situations where the Coase Theorem applies, bargaining power does not influence whether the efficient outcome is reached, but affects the distribution of gains
What will be an ideal response?
New growth theorists believe that increased economic growth is primarily driven by: a. higher level of savings
b. higher level of capital investments. c. increased foreign investment. d. technological innovation and ideas.
Diseconomies of scale start between:
The following schedule gives the cost data for a firm:
A. 0 and 10 units of output
B. 40 and 50 units of output
C. 20 and 30 units of output
D. 30 and 40 units of output
Contractors can use plywood or brick to construct walls. Suppose the price of bricks increases. Which of the figures above best illustrates the effect of this change on the market for plywood?
A) Figure A B) Figure B C) Figure C D) Figure D E) Figure A or Figure C depending on how contractors react to the higher price of bricks.