Implicit cost is the opportunity cost of the inputs that do not require monetary payment.
Answer the following statement true (T) or false (F)
True
You might also like to view...
The threat of a large fine for failure to pay income taxes is an example of
A) the excessive power of the Internal Revenue Service. B) the ineffectiveness of incentives to get people to pay their taxes. C) a negative incentive to get all people to pay taxes. D) people failing to consider all the benefits the government provides them.
Return to the version of the game between the fishermen in which they fish independently. If the marginal cost for just fisherman A went up, what would be the likely effect on the Nash equilibrium?
a. A would catch more fish, and B would catch fewer. b. A would catch fewer fish, and B would catch more. c. A would catch more fish, but B's catch would not change. d. A would catch fewer fish, but B's catch would not change.
If there is a low degree of uncertainty combined with a low degree of asset specificity, _____ will be efficient
a. long-term contracts b. short-term contracts c. market transactions d. vertical integration
Suppose a commercial banking system has $100,000 of outstanding checkable deposits and actual reserves of $35,000. If the reserve ratio is 20 percent, the banking system can expand the supply of money by the maximum amount of:
A. $300,000. B. $175,000. C. $122,000. D. $75,000.