Accounting profits are total revenues minus
A) all relevant opportunity costs.
B) explicit and implicit costs.
C) explicit costs and all other relevant opportunity costs.
D) explicit costs.
D
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If tax rates in a country increase, ________
A) the unemployment rate in the country will fall B) the gross domestic product of the country will decrease C) the country's expenditure on consumption will increase D) the aggregate price level of the country will rise
As new firms enter an existing industry, it can be expected that the
a. market price will increase b. output of existing firms will increase c. profit of existing firms will increase d. market demand should decrease e. profit of existing firms will decrease
The perfect competition price system is the most efficient because it equates MC = P = MU
a. True b. False Indicate whether the statement is true or false
The labor supply curve may have a backward-bending portion if, at higher wages, the income effect is
a. smaller than the substitution effect. b. larger than the substitution effect. c. negative. d. Any of the above could result in a backward-bending supply curve.