Out-of-pocket expenses such as wages and raw materials are
A) direct costs.
B) an owner-provided capital cost.
C) implicit costs.
D) explicit costs.
Answer: D
You might also like to view...
In economics, the total amount received for selling a good or service is referred to as
A) revenue. B) factor payments. C) profit. D) capital gains.
You should do this problem in three steps. First: Fill in Table 1. Assume fixed cost is $1000 and price is $575. Second: Draw a graph of the firm's demand, marginal revenue, average variable cost, average total cost, and marginal cost curves on a piece of graph paper. Be sure to label the graph correctly. On the graph, indicate the break-even and shutdown points and the firm's short-run and long-run supply curves. Third: Calculate total profit in the space below, then answer questions a through d. (a) The minimum price the firm will accept in the short run is $_______. (b) The minimum price the firm will accept in the long run is $_______. (c) The output at which the firm will maximize profits is _______. (d) The output at which the firm will operate most efficiently is ________.
Table 1:
Table 2:
