Examlex

Solved

Fred Is Having a Vivid Dream About Running in a Marathon.His

question 72

Multiple Choice

Fred is having a vivid dream about running in a marathon.His legs don't start pumping furiously in bed in order to run because:


Definitions:

Explicit Costs

The direct payment costs to others in the course of running a business or undertaking an economic transaction.

Implicit Costs

Costs that represent forgone opportunities, often not directly outlaid but incurred when resources are used for one purpose over another.

Marginal Cost

captures the cost added by producing one extra item of a product, emphasizing the concept of economies of scale and efficiency in production.

Marginal Product

An increase in output resulting from the use of one more unit of a particular input, holding all other inputs constant.

Related Questions