Which of the Following Statements Is True

question 12

Multiple Choice

Which of the following statements is true?

• A)Economic profits ignore implicit costs and revenues.
• B)Although implicit costs do not show up in accounting profits,they nevertheless affect managerial decisions.
• C)Although explicit costs do not show up in accounting profits,they nevertheless affect managerial decisions.
• D)Economists consider sunk costs in their decision making

Understand and apply the concept of Marginal Revenue Product of Land, Labor, and Capital to make hiring decisions.

Analyze how changes in wage rate affect the quantity of labor hired by a firm.

Differentiate between economic scenarios based on theoretical frameworks to make labor market decisions.

Calculate and interpret the implications of changes in factor prices on the demand for labor, land, and capital.

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Definitions:

Conflict Management

The practice of identifying and handling conflicts sensibly, fairly, and efficiently.

Ethos

The characteristic spirit, moral values, or guiding beliefs of a person, community, or culture.

Logos

The principle of reason and judgment, often associated with persuasive communication.

Pathos

One of the three modes of persuasion in rhetoric (alongside ethos and logos), appealing to the audience's emotions.