Quiz_6 - EC201 Introduction to Microeconomics (G.Lepori)...

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EC201 Introduction to Microeconomics (G.Lepori) Spring 2007 1 Quiz 6 1) An example of an explicit cost of production would be a. the cost of forgone labor earnings for an entrepreneur. b. the lost opportunity to invest in capital markets when the money is invested in one's business. c. lease payments for the land on which a firm’s factory stands. d. Both a and c are correct. ANS: C 2) Accounting profit is equal to a. marginal revenue minus marginal cost. b. total revenue minus the explicit cost of producing goods and services. c. total revenue minus the opportunity cost of producing goods and services. d. average revenue minus the average cost of producing the last unit of a good or service. ANS: B 3) Economists normally assume that the goal of a firm is to a. maximize its total revenue. b. maximize its profit. c. minimize its explicit costs. d. minimize its total cost. ANS: B 4) Which of the following expressions is correct? a.
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Quiz_6 - EC201 Introduction to Microeconomics (G.Lepori)...

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