The difference between the accountant's and the economist's measurement of cost is equal to implicit costs.
Answer the following statement true (T) or false (F)
True
Accounting cost refers to the explicit dollar outlays made by a producer. Economic cost, in contrast, refers to the value of all costs, both explicit and implicit.
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The managerial technique of markup pricing is consistent with the economic theory of profit maximization when the markup is positively related to the price elasticity of demand
Indicate whether the statement is true or false
A landlord will supply her land for rental only if in equilibrium
a. she receives economic rent on the land. b. she is paid at least the opportunity cost of using the land herself. c. her land is marginal. d. her rate of return on her investment in the land is zero.
As a person's wealth increases we would expect the demand for money to:
A. decrease. B. not change; money demand does not vary with wealth, only with income. C. increase dollar for dollar with wealth. D. increase but at a rate less than dollar for dollar.
Whenever there is strong heteroskedasticity, it is preferable to use OLS rather than WLS, which may use a possibly misspecified variance function
Answer the following statement true (T) or false (F)