When fixed costs are ignored because they are irrelevant to a business's production decision, they are called
a. explicit costs.
b. implicit costs.
c. sunk costs.
d. opportunity costs.
c
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What are the primary reasons for and against a policy of "too big to fail."
What will be an ideal response?
In the year after the stock market crash of 1929, stock prices on average ___
a. were lower than they had been in decades b. were lower than in 1929 but higher than in the mid-1920s c. rebounded to a level higher than in 1929 d. cannot be reliably calculated because no buyers could be found for many stocks, and hence no prices were reported
If good A had twice as many good substitutes as good B, but good B consumed twice the amount of a buyers income as good A, goods A and B would have the same elasticity of demand
a. True b. False Indicate whether the statement is true or false
What is the present value of $100 5 years from now if the interest rate is 12%?
Fill in the blank(s) with the appropriate word(s).