Which of the following is NOT an example of an explicit cost?
A. The income the owner could have earned in his or her next best employment opportunity.
B. The salaries paid to the managers who help run the business.
C. The overtime wages paid to workers.
D. The rent the owner pays each month to lease office space.
Answer: A
Economics
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In an oligopoly with two firms, one firm's share of the market is 70 percent. The Herfindahl-Hirschman Index is ________
A) 4,900 B) 0.7 C) 5,800 D) 100
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An essential assumption of the Cournot model is that each firm aims to maximize profits, based on the expectation that its own output decision will not have an effect on the decisions of its rivals. Critically evaluate this assumption
What will be an ideal response?
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