A firm's cost of production equals ________
A. all the costs paid with money, called explicit costs
B. the implicit costs of using all the firm's own resources
C. all explicit costs and implicit costs, excluding normal profit
D. the costs of all resources used by the firm whether bought in the marketplace or owned by the firm
D A firm's costs include the opportunity costs of all the resources it uses.
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Marginal cost refers to the ________ cost incurred when choosing a particular action
A) total B) net C) implicit D) additional
Generally, negative externalities result in
A. too much of a good being produced. B. the socially optimal output of a good being produced. C. too little of a good being produced. D. either a or c E. any of the above
Which of the following is the best definition of what economists define as total income?
A) payment for labor services B) payment for labor services and for ownership of other factors of production C) payment for labor services, for use of other factors of production, and gifts and government transfers D) inheritance
Bill attends a local basketball game. The teams are very unbalanced, the play is bad, and the score quickly reaches 36-2. At halftime, Bill realizes he's having no fun, leaves the game, and goes home. Bill's behavior is NOT determined by
A. economic logic. B. sunk costs. C. utility maximization. D. None of these is true.