ECO 211 HA7

ECO 211 HA7 - 2.2) Implicit cost is when a business...

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Microeconomics 211 Chapter 7: Technology, Production, and Costs HA 7 ( #1.4, 2.1, 2.2, 2.5, 2.7) 2.1) In the short run, a firm’s technology and the size of its physical plant (factory, store or office) are both fixed, but the number of workers hired is variable, but in the long run, the firm is able to vary all its inputs, adopt new technology, and increase/decrease the size of its physical plant. The amount of time that separates the short run from the long run varies from firm to firm.
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Unformatted text preview: 2.2) Implicit cost is when a business experiences nonmonetary opportunity costs. An implicit cost is different from an explicit cost is when a business spends money. 2.5) a) fixed b) variable c) variable d) fixed e) fixed 2.7) The opportunity cost to Bennett for staying in Seattle is $82 million (the $63 million loss he takes by staying in Seattle + the $19 million profit he would earn if he could move to Oklahoma City)...
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This note was uploaded on 01/14/2012 for the course ECO 211 taught by Professor Morvey during the Fall '10 term at Piedmont TC.

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