In the short run, total costs equal
A. the sum of total fixed costs and total implicit costs.
B. the sum of total fixed costs and total variable costs.
C. the sum of total fixed costs and total explicit costs.
D. the sum of total variable costs and total implicit costs.
Answer: B
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If the economy is operating on the long-run aggregate supply curve, then expansionary fiscal policy will
A) generate higher prices in the short run, but will induce aggregate supply to increase in the long run. B) generate an increase in real GDP and higher prices in the short run, but then real GDP will decrease to its long-run level, and the price level will increase some more. C) generate an increase in real GDP without higher prices in the short run, but then real GDP will return to its long-run level, and the price level will increase. D) generate an increase in real GDP and higher prices in both the short run and the long run.
Larry Lawnlover is trying to decide whether it would be more efficient to trim his lawn with a hand-operated clipper or to buy and use an electrically operated weed-trimmer
Which of the items below will help determine the more efficient choice for Larry? A) Larry's dislike for the noise created by power tools B) Larry's fear of being injured while using power tools C) The sensitive skin on Larry's hand, which causes him to develop, blisters easily D) All of the above. E) None of the above.
Suppose Campus Books, a profit-maximizing firm, is the only supplier of the textbook for a given class. The marginal cost of supplying each book is constant and equal to $10, and Campus Books has no fixed costs. The table shows the reservation prices of the eight students enrolled in the class. CustomerReservation Price($/Book)Q60R54S48T42U36V30W24X18What is the socially optimal number of books?
A. 6 B. 8 C. 7 D. 5
The supply curve for land is vertical.
Answer the following statement true (T) or false (F)