Economic cost is always less than accounting cost.
Answer the following statement true (T) or false (F)
False
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Refer to Figure 16-1. With perfect price discrimination, the firm will produce and sell
A) Q1 units. B) Q2 units. C) Q3 units. D) Q4 units.
A rapid increase in the availability of credit to previously underserved borrowers is likely ________
A) to result from financial liberalization B) to improve the allocation of capital C) to confirm the merits of microcredit D) to result from deleveraging
What are the three ways economies are organized?
a. communism, socialism, free b. market, capitalism, mixed c. traditional, command, market d. traditional, market, mixed
Answer the following statements true (T) or false (F)
1. If the consumer is willing to pay a price higher than the actual price of a product, then the consumer will not buy the product because the consumer surplus will be negative. 2. Consumer surplus is the reason why sometimes a shopper regrets having bought a particular item. 3. Assume that there are four consumers A, B, C, and D, and the prices that each of them is willing to pay for a glass of lemonade is, respectively, $1.50, $1.20, $1.00, and $0.90. If the actual price of lemonade is $1.00 per glass, then consumer surplus in this market will be $0.70. 4. When the marginal benefits exceed the marginal costs of producing a product, then allocative efficiency is not achieved in the market.