A Nonmonetary Opportunity Cost Is Called A(n)________, While a Cost

question 200

Multiple Choice

A nonmonetary opportunity cost is called a(n) ________, while a cost that involves spending money is called an ________.

• A)accounting cost; explicit cost
• B)implicit cost; explicit cost
• C)accounting profit; economic profit
• D)normal rate of return; asset

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Definitions:

Elasticity

A measure in economics that indicates how the quantity demanded or supplied of a product changes in response to a change in price.

Supply

Represents the total amount of a specific good or service that is available to consumers.

Income Elasticity

measures how much the quantity demanded of a good changes in response to a change in consumers' income.

Midpoint Method

A technique used in economics to calculate the percentage change between two values, averaging the initial and final values to estimate elasticity.