Which of the following statements is true?
a. Economic profits ignore implicit costs
b. Economic profits include implicit costs.
c. Accounting profits include all of the opportunity costs.
d. Economists consider sunk costs in their decision making.
b
You might also like to view...
The classical approach to macroeconomics assumes that
A) wages, but not prices, adjust quickly to balance quantities supplied and demanded in markets. B) wages and prices adjust quickly to balance quantities supplied and demanded in markets. C) prices, but not wages, adjust quickly to balance quantities supplied and demanded in markets. D) neither wages nor prices adjust quickly to balance quantities supplied and demanded in markets.
Economic theory would suggest that rising oil prices would reduce the amount of oil exploration and extraction.
Answer the following statement true (T) or false (F)