Question 15 (i) Which of the following is(are) correct about how accountants and economists consider costs? Accountants consider only implicit costs Economists consider both explicit and implicit costs A: 1 only B: 2 only C: Both 1 and 2 D: Neither 1 nor 2 (ii) Which of the following statements is(are) correct for a monopoly firm and a competitive firm? Both firms earn economic profit in the long run. Both firms aim to maximize profit and produce at P = MC. A: 1 only B: 2 only C: Both 1 and 2 D: Neither 1 nor 2
Question 15 (i) Which of the following is(are) correct about how accountants and economists consider costs? Accountants consider only implicit costs Economists consider both explicit and implicit costs A: 1 only B: 2 only C: Both 1 and 2 D: Neither 1 nor 2 (ii) Which of the following statements is(are) correct for a monopoly firm and a competitive firm? Both firms earn economic profit in the long run. Both firms aim to maximize profit and produce at P = MC. A: 1 only B: 2 only C: Both 1 and 2 D: Neither 1 nor 2
Chapter7: Production And Cost In The Firm
Section: Chapter Questions
Problem 1.3P
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Question 15
(i) Which of the following is(are) correct about how accountants and economists consider costs?
- Accountants consider only implicit costs
- Economists consider both explicit and implicit costs
A: 1 only
B: 2 only
C: Both 1 and 2
D: Neither 1 nor 2
(ii) Which of the following statements is(are) correct for a
- Both firms earn economic profit in the long run.
- Both firms aim to maximize profit and produce at P = MC.
A: 1 only
B: 2 only
C: Both 1 and 2
D: Neither 1 nor 2
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