Trees Growing Close to Buildings Can Be a Problem Because

question 8

Multiple Choice

Trees growing close to buildings can be a problem because the roots

• A) Can grow into the foundations
• B) Can destroy the foundations by taking the nutrients from the concrete
• C) Take water from the soil around the foundations
• D) Produce chemicals that corrode the concrete in foundations
• E) Cause the concrete in the foundations to expand

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Definitions:

Economic Profits

Profits that exceed the costs of all inputs, including both explicit costs (like wages and materials) and implicit costs (like the opportunity cost of capital).

Industry Equilibrium

A state where supply and demand in an industry are balanced, leading to stable prices and quantities.

Economic Profits

The difference between total revenue and total costs, including both explicit and implicit costs, indicating the financial gain in excess of the opportunity costs.

Long-run Equilibrium

A state in which all firms in a market are earning zero economic profits, ensuring that no firm has an incentive to enter or exit the market.