A firm earns a normal profit when its total revenues just offset both the ________ cost and ________ cost
A) accounting; opportunity
B) accounting; replacement
C) historical; replacement
D) explicit; accounting
A
You might also like to view...
The time and invested funds involved in starting a lawn-cutting business address the economic concept of
A) the marginal principle. B) the principle of diminishing returns. C) opportunity cost. D) the real-nominal principle.
Assume that production from a automobile manufacturer caused acid rain. If the government imposed a tax on the manufacturer equal to the cost of the acid rain, the government's action would
A) externalize the externality. B) eliminate all acid rain. C) force the manufacturer to move production to another location. D) internalize the externality.
Based on the Net Interest Margin the poor bank performance in the late 1980s
A) was not the result of interest-rate movements. B) was not the result of risky loans made in the early 1980s. C) resulted from a narrowing of the gap between interest earned on assets and inters paid on liabilities. D) resulted from a huge decrease in provisions for loan losses.
The cost, c, of a college education that serves only as a signal of a high-quality worker is $20,000. The wage of a known high-quality worker, wh, is $75,000. The wage for a known low-quality worker, w1, is $50,000
For what value of the share of the work force that is of high quality, t, is a pooling equilibrium possible?