Generally, accounting profits are:
A) greater than economic profits, because accounting profits do not consider explicit costs.
B) equal to economic profits, because accounting costs include all opportunity costs.
C) smaller than economic profits, because accounting profits do not consider implicit costs.
D) greater than economic profits, because accounting profits do not consider implicit costs.
Ans: D) greater than economic profits, because accounting profits do not consider implicit costs.
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Which of the following is true with regards to a long-run cost function?
a. The shape of the firm's long-run cost function is important in decisions to expand the scale of operations b. The long-run average cost curve is U-shaped c. The long-run average cost curve is flatter than the short-run average cost curve. d. The curve consists of the lower boundary of all the short-run cost curves e. All of the above
The relationship between money and gross domestic product is shown by the equation of exchange
a. True b. False Indicate whether the statement is true or false