The Amount of Money That a Wheat Farmer Could Have

question 465

Multiple Choice

The amount of money that a wheat farmer could have earned if he had planted barley instead of wheat is

• A)an explicit cost.
• B)an accounting cost
• C)an implicit cost.
• D)forgone accounting profit.

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Definitions:

Total Cost Curve

A graphical representation that shows the total cost of producing different quantities of output.

Ratio

A mathematical expression that represents the quantitative relationship between two numbers, showing how many times one value contains or is contained by the other.

Output

The total amount of goods or services produced by a firm, industry, or economy in a given period.

Average Fixed Costs

The fixed costs of production divided by the quantity of output produced, decreasing as production increases.