The Temperature on a Cloudy Night Is Likely to Be

question 42

Multiple Choice

The temperature on a cloudy night is likely to be ________ those on a clear night-all other factors being equal.

• A) warmer than
• B) colder than
• C) the same as

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Definitions:

Implicit Costs

The opportunity costs of using resources owned by the firm for its own production instead of earning income from these resources elsewhere.

Explicit Costs

Direct, out-of-pocket payments made for operations or production, such as wages, rent, and materials.

Average Fixed Cost

The constant expenses associated with production (expenses unaffected by output levels) divided by the volume of production.

Total Fixed Cost

The sum of all costs that do not change with the level of output or activity over a short period, such as rent, salaries, and equipment maintenance costs.