Implicit and explicit costs are different in that:
A. explicit costs are opportunity costs; implicit costs are not.
B. implicit costs are opportunity costs; explicit costs are not.
C. the latter refer to nonexpenditure costs and the former to monetary payments.
D. the former refer to nonexpenditure costs and the latter to monetary payments.
Answer: D
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How does the text distinguish between the market and government?
A) The market is based on competition; the government is based on cooperation. B) The market is based on prices; the government is based on policies. C) The market is based on individualism; the government is based on socialism. D) In all of the above ways. E) In none of the above ways.
The primary reason why a monopoly can make a long-run economic profit is the existence of
A) barriers to entry. B) inelastic demand. C) price discrimination. D) many buyers.
A stock whose rate of return fluctuates less than the rate of return of a market portfolio will have a beta that equals
A) 1. B) less than 1. C) more than 1. D) Either A or C above
Refer to the above table. Suppose the firm hires 4 workers and the price of the good sold is $4. The marginal factor cost of labor must be
A) $4. B) $150. C) $3080. D) $600.