When the production possibility frontier shifts out relatively more in one direction, we have

Refer to Figure 3-2. A decrease in the number of firms in the market would be represented by a movement from

A) A to B. B) B to A. C) S1 to S2. D) S2 to S1.

The difference between explicit costs and implicit costs

A) is that explicit costs are opportunity costs while implicit costs are not. B) is that implicit costs are opportunity costs while explicit costs are not. C) is that explicit costs are short-run costs and implicit costs are long-run costs. D) is that explicit costs involve resources that are purchased and implicit costs involve resources the firm already owns.