True/False: 1. Implicit costs are those costs, which have been incurred in the past and cannot be recovered by current decisions. 2. It is possible for the economic profit and accounting profit to be equal to one another. 3. If Ed<1, an increase in price leads to higher revenue. 4. In the long run, at least some of the inputs should be variable. 5. Production is a transformation of resources in to goods and services.
True/False: 1. Implicit costs are those costs, which have been incurred in the past and cannot be recovered by current decisions. 2. It is possible for the economic profit and accounting profit to be equal to one another. 3. If Ed<1, an increase in price leads to higher revenue. 4. In the long run, at least some of the inputs should be variable. 5. Production is a transformation of resources in to goods and services.
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter7: Production, Costs, And Industry Structure
Section: Chapter Questions
Problem 22RQ: What are diminishing marginal returns as they relate to costs?
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True/False:
1. Implicit costs are those costs, which have been incurred in the past and cannot be recovered by
current decisions.
2. It is possible for the economic profit and accounting profit to be equal to one another.
3. If Ed<1, an increase in price leads to higher revenue.
4. In the long run, at least some of the inputs should be variable.
5. Production is a transformation of resources in to goods and services.
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