The opportunity cost of owner-provided labor is the
A) wage rate paid to the owner.
B) explicit part of the wage rate paid to the owner.
C) salary the owner could have made if she worked at her best alternative job.
D) profit after all of the bills have been paid.
C
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Explain for each event whether it changes short-run aggregate supply, long-run aggregate supply, aggregate demand, or some combination of them
What will be an ideal response?
To make a threat more credible, managers can do all of the following except which one?
A) make competitors aware of the firm's plans B) keep competitors in the dark about the firm's plans C) take action to lower the firm's costs D) take action to increase the firm's capacity
When an economy is operating on its production possibilities curve, more production of one good means less production of another because:
a. resources are limited. b. resources are not perfectly adaptable to alternative uses. c. wants are limited. d. wants are unlimited. e. some resources are not employed.
If a firm chooses to produce output at the point where MR equals MC,
a. then TR - TC will be maximized if there is a profit b. economic profits will be zero c. there will be positive accounting profits d. there will be positive economic profits e. average cost must equal average revenue