Explicit costs are
A) the opportunity costs of all resources used by the firm.
B) the costs associated with the resources that the firm owns.
C) actual expenditures that a firm must make.
D) all costs associated with the short run.
Answer: C
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If the CPI is now 95, then prices have _____ since the base year.
A. fallen by 95 percent B. fallen by 5 percent C. risen by 5 percent D. risen by 95 percent
Large minimum efficient scale of plant combined with limited market demand may lead to:
A. natural monopoly. B. patent monopoly. C. government franchise monopoly. D. shared monopoly.
Which of the following is not a characteristic of a monopolistically competitive market?
A. There is only one firm selling a product. B. There are many firms selling products that are similar but not identical. C. There are many firms that have some control over price. D. There are no artificial barriers to entry.
The difference between the total amount that people would have been willing to pay for the total quantity produced and consumed in a market and what they actually pay at the market clearing price is called
A) production excess. B) excess demand. C) market surplus. D) consumer surplus.