Implicit costs are measured by
A. the lowest value of all alternative uses of inputs.
B. the value of the next-best alternative uses of inputs.
C. actual expenses paid by a firm.
D. total revenues minus total costs.
Answer: B
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Suppose the country of Popcorn produces only jets and corn. If Popcorn cannot produce any more jets without giving up corn, we say that Popcorn has achieved
A) the highest marginal benefit. B) production efficiency. C) the lowest marginal cost. D) the highest opportunity cost.
If the United States purchases oil from Kuwait, what is the effect in the exchange market? a. It will increase the supply of U.S. dollars
b. It will decrease the supply of U.S. dollars. c. It will increase the demand for U.S. dollars. d. It will decrease the demand for U.S. dollars.
The 2005 Boston Globe article discussing ticket scalping points out that the price people will pay for tickets will rise when
a. supply and demand are both limited. b. supply is limited and demand is not limited. c. supply is limited and demand is not limited. d. supply and demand are both not limited.
The economy is undergoing a recession that has reduced consumers' incomes. In the computer chip market, this will lead to
A) an increase in price and a decrease in quantity. B) an increase in price and an increase in quantity. C) a decrease in price and a decrease in quantity. D) a decrease in price and an increase in quantity.