Which of the following statements is INCORRECT?
A. A firm's total economic cost is at least as large as the firm's total accounting cost.
B. A firm's total economic cost includes both explicit cost and implicit cost of the firm.
C. A firm's implicit cost is the opportunity cost of non-purchased inputs.
D. A firm's total accounting cost is at least as large as the firm's implicit cost.
Answer: D
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"All else constant, consumers will purchase more of a good as the price falls." This statement reflects the behavior underlying:
A. a change in demand. B. the demand curve. C. the supply curve. D. a change in supply.
If there is a surplus of tacos, then the
A) quantity of tacos demanded equals the quantity of tacos supplied. B) quantity of tacos demanded is greater than the quantity of tacos supplied. C) quantity of tacos demanded is less than the quantity of tacos supplied. D) market is at equilibrium. E) supply curve of tacos will shift leftward to eliminate the surplus.
When a bank receives a check drawn on an account from another commercial bank, the bank gains
A) capital equal to the amount of the check. B) capital equal to the required reserve ratio times the amount of the check. C) reserves equal to the amount of the check. D) reserves equal to the required reserve ratio times the amount of the check.
If the price of coffee decreases, the demand curve for tea (a substitute good) will:
a. remain unchanged. b. shift to the right. c. shift to the left. d. do none of these