A. implicit costs
B. variable costs
C. the sum of implicit and explicit costs.
D. explicit costs.
E. marginal costs
Average And Total Cost
If there are implicit costs of production ?
A. accounting profit will exceed economic profit
B. economic profit will always be zero
C. economic profit will exceed accounting profit
D. accounting profit will always be zero
E. economic profit and accounting profit will be equal
If a production function exhibits diminishing marginal product the slope of the corresponding total-cost curve ?
A. is liner (a straight line)
B. could be any of these answers
C. becomes steeper as the quantity of output increases
D. become flatter as the quantity of output increases.
Which of the following is a variable cost in the short run ?
A. rent on the factory
B. wages paid to factory labor
C. interest payments on borrowed financial capital
D. payments on the lease for factory equipment
E. salaries paid to upper management
If marginal costs equal average total costs ?
A. average total cost is falling
B. average total cost is raising
C. average total cost is maximized
D. average total cost is minimized
In the long run, if a very small factory were to expand its scale of operations it is likely that it would initially experience ?
A. an increase in average total costs
B. diseconomies of scale
C. economies of scale
D. constant returns to scale
The efficient scale of production is the quantity of output that minimizes ?
A. average fixed cost
B. average total cost
C. average variable cost
D. marginal cost
Economic profit is equal to total revenue minus ?
A. variable costs
B. implicit costs
C. explicit costs
D. marginal costs