A cost center is
a. evaluated based on minimizing costs within the division
b. evaluated based on maximizing costs within the division
c. evaluated based on minimizing profits generated by the division
d. evaluated based on maximizing profits generated by the division
a
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Implicit costs can be defined as
A) the non-monetary opportunity cost of using the firm's own resources. B) the deferred cost of production. C) total cost minus fixed costs. D) accounting profit minus explicit cost.
Does minimizing average total costs ensure that a firm is maximizing its profits?
If a country’s production possibilities curve gets more bowed out over time, it is an indication that
A) technological change has taken place. B) society is learning to use its resources more efficiently. C) the quantity of labor and capital have increased. D) resources have become more highly specialized.
Government can correct for negative externalities by
A) decreasing taxes. B) increasing taxes or regulation. C) allowing the market system to correct the problem. D) decreasing the costs to those responsible for the externality.