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.
1. TRUE
2. FALSE
3. FALSE
You might also like to view...
If a tax was instituted such that every dollar collected in taxes from high income households resulted in a distribution of $.80 to low income households
A) efficiency and equality of incomes would both decrease. B) equality of incomes would increase but efficiency would decrease. C) efficiency would increase but equality of incomes would decrease. D) efficiency and equality of incomes would both increase.
"Because of rent seeking, a monopoly may end up making zero economic profit." Is the previous statement correct or incorrect? Why?
What will be an ideal response?