Businesses That Fail to Account for Implicit Costs,like the Strawberry

question 103

Multiple Choice

Businesses that fail to account for implicit costs,like the strawberry farmer,Hiroshi Fujishige,who failed to consider the enormous opportunity of selling his property to Disneyland,will

• A)Go out of business immediately.
• B)Make higher-than-normal profits.
• C)Make more money when they shut down.

---

Definitions:

Competitive Market

A market structure characterized by a large number of buyers and sellers, free entry and exit, and products that are close substitutes, leading to price determination by supply and demand.

Coconuts

Tropical fruits with a hard outer shell and milky interior, known for their versatility in food products and industrial uses.

Fish

Aquatic animals that are typically cold-blooded, covered with scales, and equipped with fins, used as a significant food source for humans.

Comparative Advantage

An economic principle that refers to the ability of an entity to produce goods or services at a lower opportunity cost than others, leading to more efficient trade.