Economic Principles Quiz

Accounting cost includes only implicit costs, while economic cost includes both explicit and implicit costs.

Accounting cost includes only explicit costs, while economic cost includes both explicit and implicit costs. (correct)

Accounting cost includes all business expenses, while economic cost includes only explicit costs.

Accounting cost includes only fixed costs, while economic cost includes both fixed and variable costs.

The cost of using resources in the production of a particular good or service, measured in terms of the next best alternative foregone. (correct)

The cost of variable inputs in the production process.

The cost of producing one additional unit of output.

The cost of fixed inputs in the production process.

AFC decreases as output increases, while AVC remains constant.

AFC increases as output increases, while AVC remains constant.

AFC remains constant as output increases, while AVC increases.

AFC remains constant as output increases, while AVC decreases. (correct)

<p>When MC = AC, AC is at its minimum.</p> Signup and view all the answers

<p>The revenue generated from selling one additional unit of output.</p> Signup and view all the answers