A firm's opportunity costs of production are equal to its implicit costs only
a. true
b. false
Answer: b. false
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In understanding and analyzing "market supply," we focus on how much all firms
A. will supply in the future at various prices. B. want to supply at a given price. C. are willing and able to supply at different prices. D. have sold in the recent past at various prices.
In the figure above, if the quantity of yogurt produced increases from 2 gallons an hour to 3 gallons an hour, the opportunity cost of a gallon of yogurt in terms of ice cream is
A) half a gallon. B) 1 gallon. C) 3 gallons. D) 4 gallons.
If the government allows businesses to accelerate (increase) depreciation, then
A) the user cost of capital declines and V* increases. B) the user cost of capital declines and V* decreases. C) the user cost of capital increases and V* decreases. D) the user cost of capital increases and V* increases.
If depreciation is equal to investment ________
A) capital per-worker rises over time B) capital per-worker is stable C) capital per-worker falls over time D) capital per worker equals saving