Mika borrows $100,000 to start up her own beauty shop. She pays 5 percent interest on her loan. In order to account for all costs of her business, Mika must not forget:
A. the implicit cost of $100,000.
B. the implicit cost of $5,000.
C. the explicit cost of $105,000.
D. the explicit cost of $5,000.
D. the explicit cost of $5,000.
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Refer to Figure 15-2. If the firm's average total cost curve is ATC3, the firm will
A) suffer a loss. B) break even. C) make a profit. D) face competition.
Exhibit 2-6 Production possibilities curve data A B C D E F Capital goods150 140 120 90 50 0 Consumer goods 0 20 40 60 80 100 In Exhibit 2-6, the concept of increasing opportunity costs is represented by the fact that:
A. the quantity of capital goods produced must be less than 150. B. the quantity of consumer goods is constant for each change in the quantity of capital goods produced. C. greater amounts of capital goods must be sacrificed to produce each additional unit of consumer goods. D. the amount of consumer goods produced must be greater than zero.