Accounting costs represent
A) explicit costs paid by the firm.
B) opportunity costs.
C) both sunk and future costs.
D) long run costs only.
A
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Suppose the market demand function for ice cream is Qd = 10 - 2P and the market supply function for ice cream is Qs = 4P - 2, both measured in millions of gallons of ice cream per year. Suppose the government imposes a $0.50 tax on each gallon of ice cream. The price received by sellers with the tax is:
A. $2.33. B. $1.50. C. $1.75. D. $1.83.
The commercial jetliner industry consisting of Boeing and Airbus would best be described as a (an)
a. perfectly competitive market. b. monopolistically competitive market. c. oligopoly. d. monopoly.
A year-long drought that destroys most of the summer's crops would be considered a:
A. short-run supply shock. B. long-run demand shock. C. long-run supply shock. D. short-run demand shock.
A consumer's optimum is found when
A) the marginal utility of the last dollar spent equals zero for each good. B) the marginal utility of each good is increasing and the total income is spent. C) the total utility of each good is the same and the total income is spent. D) the marginal utility of the last dollar spent on each good is the same and all income is spent.