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Question
Economists consider both explicit costs and implicit costs when measuring economic profit. The reason they consider implicit costs is that
a. they are more conservative than accountants, who consider only accounting costs.
b. most businesses forget to pay their implicit costs.
c. a business must cover its opportunity costs as well as its out-of-pocket expenses to be truly profitable.
d. implicit costs are typically far larger than explicit costs.
e. implicit costs include expenses like taxes and fees to the government.
Answer
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Related questions
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The economic entity most likely to engage in price gouging is
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What will an individual do differently as a buyer in the black market in the long run?
a. He or she will substitute away from the product.
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d. When a binding price ceiling exists, he or she will be willing to pay a lower price.
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What is the long-run consequence of a price ceiling law?
a. A surplus will continue to exist and will grow larger over time.
b. A surplus will continue to exist and will grow smaller over time.
c. A shortage will continue to exist and will grow larger over time.
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Q:
Suppose Solomon lives in a community with no price controls. What do you expect will happen if his town borders a community where there is a binding price ceiling on most products?
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Q:
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a. Demand for jelly will increase along with the price.
b. Demand for jelly will decrease along with the price.
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e. The supply of jelly will decrease and the price will increase.
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Q:
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Q:
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