# Which of the following statements is true a a firms

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Chapter 7 / Exercise 5
Managerial Economics
Froeb/McCann
Expert Verified
11.Which of the following statements is true:a.A firm's accounting costs are the same as its economic costs if the firm is earning a normal rate of return. b.A firm's accounting costs are larger than its economic costs. c.A firm’s accounting costs take account of implicit costs of capital. d.A firm's accounting costs are smaller than its economic costs.
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Chapter 7 / Exercise 5
Managerial Economics
Froeb/McCann
Expert Verified
You can buy the complete file from 12.Which of the following is NOT true if a firm shuts down and produces zero output in the short run?
13.Of the following types of costs, which is most likely a fixed cost for a shoe manufacturer?
14.A company that produces luxury automobiles has the following simplified costs. What is the marginal cost of the second automobile? # of Automobiles.....Fixed Cost..........Total Variable Costs 0.......................\$50,000............\$0 1.......................\$50,000............\$10,000 2.......................\$50,000............\$20,000 3.......................\$50,000............\$40,000
15.A security system company’s total production costs depend on the number of systems produced according to the following equation: Total Costs = \$10,000,000 + \$2000*quantity produced.What is the average total cost of production when 20,000 units are produced? a.4,500. b.3,500. c.2,500. **d.1,500.
16.As a manufacturer increases output, which of the following costs should decrease?
17.As a shoe company produces more shoes the average total cost of each shoe produced decreases. This is because
18. A security system company’s total production costs depend on the number of systems producedaccording to the following equation: Total Costs = \$10,000,000 + \$2000*quantity produced.Given these data, which of the following is a false statement? You can buy the complete file from
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