Mary and Jane are partners in a business. Their business is growing but has not yet reached the point where they can afford a new delivery truck. Jane owns an old truck that she has not been using. She decides to donate it to their business for free
A) This transaction (donation) involves no economic cost.
B) This transaction involves both economic cost and accounting cost.
C) This transaction involves economic cost but no accounting cost.
D) This transaction involves no economic cost and no accounting cost.
Answer: C
You might also like to view...
When a firm exits a monopolistically competitive market, the individual demand curves faced by all remaining firms in that market will
a. shift in a direction that is unpredictable without further information. b. shift to the right. c. shift to the left. d. remain unchanged. It is the supply curve that will shift.
An increase in nominal GDP will:
a. Increase the transactions demand and total demand for money b. Decrease the transactions demand for money but increase the total demand for money c. Decrease the transactions demand and total demand for money d. Increase the transactions demand for money but decrease the total demand for money