05.13.2008
Multi Checked Self
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Econ Multi Choice questions. please check my answers. part1?
1. Forgone interest from investing your savings in a business is an example of
a. an explicit cost
b. an accounting cost
c. an implicit cost
d. a foregone tax liability
2. When economists analyze a firm's production costs, they include
a. opportunity cost
b. explicit costs
c. implicit costs
d. all of the above
3. A firm's short run shut down criterion is
a. average revenue >minimum of marginal cost
b. price
d. average revenue > average fixed cost
4. Cartels are difficult to maintain because
a. laws often prohibit explicit collusive agreements among competing firms
b. cartel agreements are difficult to enforce
c. there is always tension between cooperation and self interest in a cartel
d. all of the above
I got a, d, b, d please explain your answers thank very much.
1-c http://en.wikipedia.org/wiki/Implicit_cost
2-d
3-b
. . . . MR=P≥AVC operations condition
. . . . P
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