3:55 QCCFIIMicCh7.docx QCCFIIMicCh7.docx 5. Suppose that a business incurred implicit costs of $200,000 and explicit costs of $1 million in a specific year. If the firm sold 4,000 units of its output at $300 per unit, its accounting profits were: A) $100,000 and its economic profits were zero. B) $200,000 and its economic profits were zero. $100,000 and its economic profits were C) $100,000. zero and its economic loss was $200,000. D) 6. To economists the main difference between the short run and the long run is that: A) the law of diminishing returns applies in the long run, but not in the short run. B) in the long run all resources are variable, while in the short run at least one resource is fixed. C) fixed costs are more important to decision making in the long run than they are in the short run. in the short run all resources are fixed, D) while in the long run all resources are variable. 7. The basic difference between the short run and the long run is that: A) costs are variable in the long run. B) all costs are fixed in the short run, but all the law of diminishing returns applies in the long run, but not in the short run. at least one resource is fixed in the short C) run, while all resources are variable in the long run. D) economies of scale may be present in the short run, but not in the long run.
3:55 QCCFIIMicCh7.docx QCCFIIMicCh7.docx 5. Suppose that a business incurred implicit costs of $200,000 and explicit costs of $1 million in a specific year. If the firm sold 4,000 units of its output at $300 per unit, its accounting profits were: A) $100,000 and its economic profits were zero. B) $200,000 and its economic profits were zero. $100,000 and its economic profits were C) $100,000. zero and its economic loss was $200,000. D) 6. To economists the main difference between the short run and the long run is that: A) the law of diminishing returns applies in the long run, but not in the short run. B) in the long run all resources are variable, while in the short run at least one resource is fixed. C) fixed costs are more important to decision making in the long run than they are in the short run. in the short run all resources are fixed, D) while in the long run all resources are variable. 7. The basic difference between the short run and the long run is that: A) costs are variable in the long run. B) all costs are fixed in the short run, but all the law of diminishing returns applies in the long run, but not in the short run. at least one resource is fixed in the short C) run, while all resources are variable in the long run. D) economies of scale may be present in the short run, but not in the long run.
Chapter7: Production And Cost In The Firm
Section: Chapter Questions
Problem 1.3P
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Transcribed Image Text:3:55
QCCFIIMicCh7.docx
QCCFIIMicCh7.docx
5. Suppose that a business incurred implicit costs of
$200,000 and explicit costs of $1 million in a
specific year. If the firm sold 4,000 units of its
output at $300 per unit, its accounting profits were:
A)
$100,000 and its economic profits were
zero.
B)
$200,000 and its economic profits were
zero.
$100,000 and its economic profits were
C)
$100,000.
zero and its economic loss was $200,000.
D)
6. To economists the main difference between the
short run and the long run is that:
A)
the law of diminishing returns applies in the
long run, but not in the short run.
B)
in the long run all resources are variable,
while in the short run at least one resource is
fixed.
C)
fixed costs are more important to decision
making in the long run than they are in the short
run.
in the short run all resources are fixed,
D)
while in the long run all resources are variable.
7. The basic difference between the short run and the
long run is that:
A)
costs are variable in the long run.
B)
all costs are fixed in the short run, but all
the law of diminishing returns applies in the
long run, but not in the short run.
at least one resource is fixed in the short
C)
run, while all resources are variable in the long
run.
D)
economies of scale may be present in the
short run, but not in the long run.
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