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Microeconomics

Question in Microeconomics

me ULTIPLE CHOICE. Choose the one alternative that best completes the statement or answer the question 1) Which of the following are included in calculating economic costs but not accounting costs? A) costs of capital B) costs of natural resources C) variable costs D) opportunity cost of resources used in providing the product. 2) 2) For many entrepreneurs, starting a new business means leaving an existing job and the pay which accompany's it. The pay given up by the entrepreneur when starting a new business is an example of for that entrepreneur A) neither an accounting nor an economic cost B) an accounting cost C) an economic cost D) both a fixed and a sunk cost 3) in 2018 ZYX, Inc. had Total Revenues of S4 million and Total Accounting Cost of $3 million Investors had invested $2 million in the company and could earn a 10% return on this $2 million if they had invested it elsewhere. ZYX's accounting profit was and its economic profit B) $800,000 $1 million D) $1,200,000, 5200,000 was A) 51 million $800,000 57 million, 52 million Number of workers Units of output 4 4) Refer to Table 82, which gives a firm's production function. Assume that all non-labor inputs are fixed. Diminishing returns set in with the addition of the A) third worker B) fourth worker. C) fifth worker D) sixth worker. Table 8.2 5) 5) When a firm is experiencing diminishing marginal returns/dimimishing marginal productivity A) average cost is decreasing B) marginal costs are decreasing marginal costs are increasing D) average cost is increasing A-1