When There Are Implicit Costs of Production

question 82

Multiple Choice

When there are implicit costs of production,

• A)accounting and economic profit are equal
• B)opportunity costs of production are zero
• C)explicit costs of production are small
• D)accounting profit will exceed economic profit
• E)economic profit will exceed accounting profit

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Definitions:

Embargo

A prohibition on trade in a particular product.

Ad Valorem Tariff

A type of tariff based on a percentage of the value of the imported goods, rather than on quantity or weight.