Which of the following would be considered an implicit cost?
a. Health insurance of employees paid for by the firm
b. The water bill of the firm
c. The salaries paid to the managers of the firm
d. Foregone rent on assets owned by the firm
d
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When a foreign company engages in riskier behavior after it has received international investment funds, it is known as
A) portfolio investment. B) moral hazard. C) foreign direct investment. D) adverse selection.
Suppose the total cost of producing 50,000 telephones is $500,000 . Suppose also that at an output of 30,000 . the average total cost is $8 and the marginal cost is $6 . What is true about the minimum of the average total cost curve?
a. The minimum of the ATC is greater than $10. b. The minimum of the ATC is less than $8. c. The minimum of the ATC is between $8 and $10. d. The minimum of the ATC can be no bigger than $6. e. The minimum of the ATC corresponds to a quantity greater than 50,000.