All of the Following Statements Are True EXCEPT

question 2

Multiple Choice

All of the following statements are true EXCEPT:

• A) on a late-model car running at 2,000 rpm with a hot converter, normal readings from the exhaust pipe should be above 0.1% (with an air injection system disabled).
• B) like HC, O₂ is not formed during combustion so it should be consumed during each combustion cycle.
• C) before combustion, the incoming air is 21% O₂.
• D) when checking O₂ emissions in the exhaust, it is very important that there be no supplemental air or exhaust system leak.

---

Definitions:

Implicit Costs

These refers to the opportunity costs that are not directly paid or incurred but represent the foregone benefits from using resources in a particular way.

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, indicating the financial success exceeding the opportunity cost of resources.

Accounting Profit

The net income for a company calculated by subtracting total expenses from total revenues according to accounting principles, not including implicit costs.

Short-run Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity supplied over a short period, considering some inputs remain fixed.