ECONOMICS: CHAPTER 9.
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Explicit costs are payments the firm makes for - Answer: inputs such as wages and
salaries to its employees, whereas implicit costs are non-expenditure costs that occur
through the use of self owned resources such as foregone income.
The explicit costs of going to college include - Answer: tuition costs and the cost of
books, whereas the implicit costs include foregone income.
Which of the following statements is true? - Answer: Accounting profit equals sales
revenue minus explicit costs.
A normal profit is considered a cost because - Answer: this is the amount required to
ensure continued supply of the product.
Which of the following statements is true regarding the costs associated with owning
and operating an automobile? - Answer: Fixed costs include insurance and variable
costs include gasoline.
You are considering whether to drive your car or fly 1,000 miles to Florida for spring
break. In making your decision you should consider - Answer: the variable cost of the
trip, the opportunity cost of time, and the need for transportation in Florida.
Linda sells 100 bottles of homemade ketchup for $10 each. The cost of the ingredients,
the bottles, and the labels was $700. In addition, it took her 20 hours to make the
ketchup and to do so she took time off from a job that paid her $20 per hour. Linda's
accounting profit is _____________ while her economic profit is ______________. -
Answer: $300; negative $100
Which of the following are short-run and which are long-run adjustments?
1
APPHIA - Crafted with Care and Precision for Academic Excellence.
Quality content you can rely on!
Explicit costs are payments the firm makes for - Answer: inputs such as wages and
salaries to its employees, whereas implicit costs are non-expenditure costs that occur
through the use of self owned resources such as foregone income.
The explicit costs of going to college include - Answer: tuition costs and the cost of
books, whereas the implicit costs include foregone income.
Which of the following statements is true? - Answer: Accounting profit equals sales
revenue minus explicit costs.
A normal profit is considered a cost because - Answer: this is the amount required to
ensure continued supply of the product.
Which of the following statements is true regarding the costs associated with owning
and operating an automobile? - Answer: Fixed costs include insurance and variable
costs include gasoline.
You are considering whether to drive your car or fly 1,000 miles to Florida for spring
break. In making your decision you should consider - Answer: the variable cost of the
trip, the opportunity cost of time, and the need for transportation in Florida.
Linda sells 100 bottles of homemade ketchup for $10 each. The cost of the ingredients,
the bottles, and the labels was $700. In addition, it took her 20 hours to make the
ketchup and to do so she took time off from a job that paid her $20 per hour. Linda's
accounting profit is _____________ while her economic profit is ______________. -
Answer: $300; negative $100
Which of the following are short-run and which are long-run adjustments?
1
APPHIA - Crafted with Care and Precision for Academic Excellence.
