The implicit cost incurred by a firm to use its resources to produce its output is the firm's
A) total cost.
B) explicit cost.
C) opportunity cost.
D) accounting cost.
C
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In the income-expenditure model, firms stand ready to provide all the output that is demanded
Indicate whether the statement is true or false
Suppose that a perfectly competitive industry becomes a monopoly. What effect will this have on consumer surplus, producer surplus, and deadweight loss?
What will be an ideal response?
The income approach to measuring GDP:
A. uses the factors payments made by businesses to households to estimate GDP. B. ignores how income is earned and focuses instead on how it is used. C. adds up all household expenditures to calculate aggregate income and GDP. D. focuses on how income is spent.
The additional utility or satisfaction that one derives from consuming one more unit of any good or service is referred to as
A) total utility. B) diminishing utility. C) average utility. D) marginal utility.