Which of the Following Statements Is Incorrect

question 93

Multiple Choice

Which of the following statements is incorrect?

• A)A firmʹs total economic cost is at least as large as the firmʹs total accounting cost.
• B)A firmʹs total economic cost includes both explicit cost and implicit cost of the firm.
• C)A firmʹs implicit cost is the opportunity cost of non-purchased inputs.
• D)A firmʹs total accounting cost is at least as large as the firmʹs implicit cost.

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Definitions:

Interaction Effect

The phenomenon where the effect of one independent variable on the dependent variable differs depending on the level of another independent variable.

Dependent Variable

The variable in an experiment that is measured or observed to assess the effect of the independent variable.

Factorial Research Design

A study design that allows researchers to examine the effects of two or more independent variables simultaneously on dependent variables.

Main Effects

Refers to the individual impact of an independent variable on a dependent variable in an experiment or study.