A key difference between accountants and economists is their different treatment of the cost of capital. Does this cause an accountant's estimate of total costs to be higher or lower than an economist's estimate? Explain
An accountant would not include the forgone interest income that the money could have earned elsewhere if it had not been invested in the business. Therefore, an accountant's estimate of total cost will be less than an economist's.
Economics
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One reason why it is very difficult to write optimal military procurement contracts is because _____
a. there are numerous possible producers b. the military purchases many goods c. new technology often has to be developed d. there are many possible consumers of the product
Economics
A perfect-price-discriminating monopoly maximizes social welfare as measured by the sum of producer surplus plus consumer surplus
What will be an ideal response?
Economics