1. At any given rate of output, the difference between total cost and fixed cost is:
A. Marginal cost.
B. Average variable cost.
C. Zero in the short run.
D. Variable cost.
2. Accounting costs and economic costs differ because
A. Economic costs include implicit costs and accounting costs do not.
B. Accounting costs include implicit costs and economic costs do not.
C. Economic costs include explicit costs and accounting costs do not.
D. Accounting costs include explicit costs and economic costs do not.
3. In the short run, which of the following is most likely a variable cost?
A. Contractual lease payments.
B. Labor and raw materials costs.
C. Property taxes.
D. Interest payments on borrowed funds.
1. At any given rate of output, the difference between total cost and fixed cost is:
A. Marginal cost.
B. Average variable cost.
C. Zero in the short run.
D. Variable cost.
2. Accounting costs and economic costs differ because
A. Economic costs include implicit costs and accounting costs do not.
B. Accounting costs include implicit costs and economic costs do not.
C. Economic costs include explicit costs and accounting costs do not.
D. Accounting costs include explicit costs and economic costs do not.
3. In the short run, which of the following is most likely a variable cost?
A. Contractual lease payments.
B. Labor and raw materials costs.
C. Property taxes.
D. Interest payments on borrowed funds.
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