Mar14 - I-Clicker Questions 1) Which of the following...

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I-Clicker Questions 1) Which of the following statements correctly describes the relationship between average cost and marginal cost? When marginal cost is less than average cost, average cost is decreasing. When marginal cost is greater than average cost, average cost is increasing. 2) Now suppose John sold the generators for $2300 each, so his total revenue was $23000. With which of the following statements do you agree? Accountant answer: $600 profit. Economist answer: not enough information to determine a profit or loss. 3) Use statements I and II to answer this question (I)Accounting profit equals total revenue minus total explicit cost. (II) Economic profit equals total revenue minus both total explicit cost and total implicit cost. Both statements are true. 4) Which of the following are examples of implicit costs? The value of the owner’s time, and the rental value of a building owned by the business. 5)
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Mar14 - I-Clicker Questions 1) Which of the following...

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