In the short run, certain costs, such as rent on land and equipment, must be paid whether or not any output is produced. These are:
a. the firm's variable costs.
b. the firm's break-even costs.
c. the firm's sunk costs.
d. the firm's marginal costs.
e. the firm's fixed costs.
e
You might also like to view...
Jaxon borrows $10,000 from a bank and withdraws $20,000 from his personal savings to open a tattoo parlor. The interest rate is 3 percent for both the bank loan and his personal savings. Jaxon's implicit costs are $900
a. True b. False Indicate whether the statement is true or false
If incomes fall, then
A) the budget constraint shifts inward. B) the budget constraint shifts out. C) there is no change in the budget constraint. D) there is no relationship between the budget constraint and income.
Which statement is true?
A. Our rate of productivity increase was greater in the 1980s than the 1960s. B. The key to productivity growth is an increasing labor force. C. Rising productivity could come about with the same output from fewer units of input. D. We have a higher growth rate than the Chinese even though they have a higher savings rate.
Suppose people value clean air more as their incomes increase. What would happen to the optimal amount of clean air as a country develops economically? Is there an economic prediction we can make from this?
What will be an ideal response?