Which of the following would be an implicit cost for a business owner?
A. The $40,000 profit for this fiscal year
B. The $10 per unit cost for production of widgets
C. The $50,000 salary the entrepreneur could be making as a CPA
D. The $1500 electric bill for his business
Answer: C
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Which would indicate that a firm is operating under conditions of pure competition and is being productively efficient?
A. It is making economic profits in the long run. B. Marginal cost equals average variable cost. C. Its marginal revenue is less than average revenue. D. It produces at the minimum average total cost.
The Monetary Control Act of 1980:
a. None of the answers are correct. b. restricted savings and loan associations to long-term loans. c. created less competition among various financial institutions. d. allowed fewer institutions to offer checking account services.
In the Yap civilization of the South Pacific prior to 1920, large, heavy stones in the shape of a wheel were used as money. Which function of money was probably least served by this form of money?
A) medium of exchange B) store of value C) unit of account D) store of wealth
If short-run economic profits are greater than zero for firms in a monopolistically competitive market, in the long run we expect:
A. entry barriers to prevent competing firms from entering this market. B. the demand curve for firms in the market to shift to the right. C. competing firms to enter the market and sell similar products. D. profits to increase.