Accounting profit and economic profit differ because economic profit does not take into account opportunity cost.
Answer the following statement true (T) or false (F)
False
Accounting profit does not take into account opportunity cost.
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Rank the following goods from least to most elastic: school, prep school, Purebred Prep School
A) School, prep school, Purebred Prep School B) Prep School, school, Purebred Prep School C) Prep School, Purebred Prep School, School D) Purebred Prep School, Prep School, School E) None of the above.
Average fixed cost
A) does not change as total output increases or decreases. B) varies directly with total output. C) falls continuously as total output expands. D) rises as the output is expanded.
One baker can bake 15 pies in a day. Two bakers can bake 35 pies in a day. If the marginal revenue product of hiring the second baker is $200, then in a perfectly competitive product market
a. each pie sells for $10. b. there are diminishing marginal returns. c. there are decreasing economies of scale. d. they are operating in a constant cost industry. e. the marginal cost of production is $200.
If a nation does not have an absolute advantage in producing anything, it
a. has no comparative advantage either. b. will have a comparative advantage in the activity in which it is least inefficient. c. will try to get along without trade. d. will export raw materials and import finished products.