You and two partners start a company. However, your partners play no role in running the company. You devote all our time and talent to run your own business rather than working for someone else. You incur an(a):
a. explicit cost.
b. marginal cost.
c. sunk cost.
d. opportunity cost.
d
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Using the above figure, which of the following is TRUE?
A) Axis 1 is typically called the y-axis. B) Axis 1 is also known as the origin. C) Axis 2 is typically called the x-axis. D) Point b is known as the origin.
External costs can be defined as
A) the cost associated with private production, but partially borne by society. B) the sum of all private production costs. C) the cost of running the federal government. D) the cost of providing all public goods and services.
The earnings of a resource include both opportunity cost and economic rent, if the supply curve of a resource is downward sloping
Indicate whether the statement is true or false
How do the marginal costs of pollution reduction and the marginal costs of pollution damage change as pollution levels increase?
a. The marginal costs of pollution reduction remain constant and the marginal costs of pollution increase b. The marginal costs of pollution reduction increase and the marginal costs of pollution damage increase c. The marginal costs of pollution reduction increase and the marginal costs of pollution damage decrease d. The marginal costs of pollution reduction decrease and the marginal costs of pollution damage increase e. The marginal costs of pollution reduction decrease and the marginal costs of pollution damage decrease