Explicit costs would include
a. the rent paid by a business owner for office space
b. the interest loss of the business owner on money withdrawn from his/her savings account and invested in the business
c. the loss of rent on a building the business owner owns and uses in his/her business
d. the opportunity costs of the business owner's time
e. the use of tools owned by the business owner and dedicated to the business
A
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In monopolistic competition, when firms make an economic profit
A) the existing firms continue to make an economic profit in the long run because of product differentiation. B) new firms enter the industry so that the price falls and the economic profit eventually falls to zero. C) new firms enter the industry so that output decreases and the economic profit increases. D) new firms enter the industry so that output increases and the economic profit increases.
The aggregate production function is the
a. relationship between the amount of labor employed in the economy and the total amount of output produced b. relationship between available labor and the total amount of output produced c. the relationship between land and capital and labor employed in the economy d. long-run equilibrium of the macroeconomy e. amount of output any worker can produce given existing land and capital constraints
Which of the following is not a factor of production?
A. Land B. Money C. Capital D. Labor
If a firm currently sells a product at a point where the price elasticity of demand is 0.5, the firm needs to raise the price to maximize its total revenue.
Answer the following statement true (T) or false (F)