Economic costs of an input include
A) only implicit costs.
B) only explicit costs.
C) both implicit and explicit costs.
D) whatever management wishes to report to the shareholders.
C
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In the above figure, if the natural monopoly is regulated with an average cost pricing rule and the firm does not inflate its costs, then consumer surplus will be
A) $192 million. B) $108 million. C) $216 million. D) $60 million.
Suppose the long-run cost function is C = 2q2. What is the cost-output elasticity for this case?
A) 1 B) 2 C) 1/2 D) 4
Which of the following would lead to a leftward movement along the supply curve of euros?
a. An increase in the U.S. interest rate relative to the European interest rate b. An increase in the dollars per euro exchange rate c. A decrease in Europe's GDP d. A decrease in the dollar price of the euros e. A decrease in the U.S. price level relative to the European price level.
Angela, Bonnie, and Carl are visiting the local paint store. Angela, owner of Angela's Artful Painting Co, is posting a Help Wanted sign because she is looking for more painters to join her crew. Bonnie, who is a sole proprietor, is placing an order for 12 gallons of green paint. Carl is a painter who is looking for a job and is reading the bulletin board in the paint shop. Who is operating in
the short run? a. Angela and Bonnie b. Angela and Carl c. Angela only d. Bonnie only e. Carl only