Which of the following is a correct description of the supply curve?
i. The supply curve is also the marginal cost curve.
ii. The supply curve shows the dollars' worth of other goods that we must sacrifice to produce another unit of a good.
iii. The supply curve shows the additional cost of producing another unit of a good.
A) i only
B) i and ii
C) ii and iii
D) i, ii, and iii
E) ii only
D
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You spend $20 on a lottery ticket instead of buying groceries. The $20 spent on the lottery ticket represents an ________ and the forgone groceries represent an ________
A) explicit cost; explicit cost B) implicit cost; explicit cost C) explicit cost; implicit cost D) implicit cost; implicit cost
Gilda's Art Gallery pays a commission to her sales people when they sell a painting. This practice is known as
A) the principal-agent problem. B) incentive pay. C) minimizing implicit costs. D) minimizing explicit costs.