Which of the following is an implicit cost of going to college?
a. Tuition.
b. Books.
c. Lost income.
d. Future income.
e. Room and board.
QUESTION 2Which of the following is the result of competing through advertising for a monopolistically competitive firm?
a. Long-run average costs shift downward.
b. The firm's demand curve become flatter and shifts inward.
c. The firm's demand curve keeps the same slope and shifts inward.
d. Long-run average costs shift upward.
QUESTION 3Implicit costs are best thought of as:
a. variable costs.
b. marginal costs.
c. accounting costs.
d. opportunity costs.
e. sunk costs.
QUESTION 4In the long run in a monopolistic competitive industry,
a. economic profits will be positive.
b. price will be driven to zero.
c. the firm will not operate where MR = MC.
d. economic profit will be zero.
e. price will exceed average cost.
QUESTION 5The amount of money that could have been made by renting a piece of land to be used for building an office building instead of using the land for employee parking is a(n):
a. implicit cost.
b. accounting cost.
c. explicit cost.
d. pure economic cost.
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