Which of the following is most likely to be an implicit cost for Company X?

A. Rental payments on IBM equipment
B. Transportation costs paid to a nearby trucking firm
C. Forgone rent from the building owned and used by Company X
D. Payments for raw materials purchased from Company Y

Answer: C

Economics

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Indicate whether the statement is true or false

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Suppose the demand curve for movie tickets has unitary price elasticity and the supply curve is perfectly price elastic

If 3 million tickets are currently sold at a price of $5, approximately how much tax revenue could the government generate from a $1 specific tax? A) $18 million B) $3 million C) $2.5 million D) $1.5 million

Economics