Economic profit involves explicit costs

Assignment Help Business Economics

Reference no: EM13889082

1. Since there is free mobility of resources, the perfect competitor can freely move in and our of a given perfectly competitive market.

True

False

2. Economic profit involves explicit costs, while accounting profits involve implicit costs.

True

False

3. A firm in a perfectly competitive industry may incur a short-term loss and yet continue producing in order to minimize losses.

True

False

4. The demand which a monopolist is faced with is also the market demand for the product.

True

False

5. The average total cost curve on a graph will be found below the average variable cost curve.

True

False

6. A monopolistic competitor produces a differentiated product having numerous close substitutes.

True

False

Reference no: EM13889082

Questions Cloud

How much interest can the corporation deduct : A corporation just issued a 10 year, zero coupon bonds having a YTM of 10%. Under current tax law, how much interest can the corporation deduct in the first year?

What is the link between an international business strategy : What is the link between an international business strategy and its human resource policies, with regard to expatriate employees and their compensation?

Why has the global capital market grown so rapidly : Why has the global capital market grown so rapidly in recent years? Will this trend continue? Why or why not? What constraints can organized labor impose on the strategic choices of an international business? How can that business limit these constra..

Treatment and prevention of aids : The United States provides a significant amount of domestic and international assistance for the treatment and prevention of AIDS. Discuss and defend what you believe the future of AIDS assistance will be

Economic profit involves explicit costs : Since there is free mobility of resources, the perfect competitor can freely move in and our of a given perfectly competitive market. Economic profit involves explicit costs, while accounting profits involve implicit costs. The demand which a monopol..

A tax authority must decide on social insurance scheme : A tax authority must decide on a social insurance scheme. It knows that half the population will unemployed this year with only $400 in income from odd jobs. The other half will earn $40000 each. The tax authority taxes everyone with income at a flat..

What is the growth rate of nominal GDP : Use the following economy for the next 15 questions. Use 2009 as your base year for any calculations where a base year is needed. What is the growth rate of nominal GDP for 2008? What is the inflation rate for 2008? What is the inflation rate for 20..

Study of intertemporal utility maximization : In our study of intertemporal utility maximization, everything (initial and ending wealth, interest rate, and consumption) in the budget constraint is expressed in real terms. Reformulate the budget constraint in nominal terms and show that for a two..

Same amount of net private saving : Suppose that Country B has the same amount of net private saving in Year 1 and in Year 2. However, the government of Country B has a budget surplus of $200 billion in Year 1 and a budget surplus of $100 billion in Year 2. Other things equal, this ten..

User Account

All Pages