Answer the following questions true (T) or false (F)
1. Accounting costs exclude implicit costs.
2. If a firm is producing no output in the short run, then its total costs are zero.
3. In the short run, changes in output can only be brought about by a change in the quantity of variable inputs.
1. TRUE
2. FALSE
3. TRUE
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An increase in total factor productivity
A) increases consumption, increases output, and increases the real wage. B) reduces consumption, increases output, and increases the real wage. C) reduces consumption, increases output and reduces the real wage. D) reduces consumption, reduces output, and reduces the real wage.
One topic of study for a microeconomist would be the
A) causes of inflation. B) causes of a nation's unemployment level. C) effects of a gasoline price increase on consumer behavior. D) effects of an increase in government spending on overall economic activity.