The main factor that explains the difference between accounting cost and economic cost is
A) opportunity cost.
B) fixed cost.
C) variable cost.
D) All of the above help to explain the difference.
A
You might also like to view...
The demand schedule for a commodity illustrates how the consumption of a commodity changes with changes in:
A) its price. B) tastes and preferences. C) supply. D) income.
Many reporters in the media were critical of the high interest rates that many banks charged to lenders in the so-called sub-prime market. Using economic reasoning what was the likely justification for these high interest rates
What will be an ideal response?
If a firm’s fixed cost (overhead) increases, what happens to its profit-maximizing price and output?
What will be an ideal response?
When the home country is small, how will an increase in a tariff protecting a home monopolist affect the home country's demand curve?
a. There will be an upward parallel shift in the demand curve. b. The demand curve will pivot upwards from its vertical intercept. c. There will be a downward parallel shift in the demand curve. d. The demand curve will pivot downwards from its vertical intercept.