Jessica makes photo frames. She spends $5 on the materials for each photo frame. She can create one photo frame in an hour. She earns $10 per hour at a part-time job at the local coffee shop. She can sell a photo frame for $30 each. An accountant would calculate the total cost for one photo frame to be

When voluntary exchange takes place, neither party usually gains from the exchange

Indicate whether the statement is true or false

Answer the following questions true (T) or false (F)

1. In the long run, all of a firm's inputs are variable. 2. Costs that change as output changes are called incremental costs. 3. Economic costs include implicit costs but not explicit costs.