True or False: 1. Explicit costs include both wages paid to workers and the opportunity cost of

Question:

True or False:
1. Explicit costs include both wages paid to workers and the of using one’s own land, labor, or capital.
2. Because implicit costs do not represent an explicit outlay of money, they are not real costs.
3. When economists say firms try to maximize profits, they mean that firms try to maximize the difference between what they receive for their goods and services in total revenue and what they give up for their inputs in total costs (explicit and implicit).
4. Economic profits equal actual revenues minus all explicit and implicit costs.
5. Economists consider a zero economic profit to be less than a normal profit rate.
6. Earning zero economic profit is different from earning zero accounting profit.
7. Sunk costs are irrelevant for any future action.
8. The short run is defined as a period too brief for some inputs to be varied.

Opportunity Cost
Opportunity cost is the profit lost when one alternative is selected over another. The Opportunity Cost refers to the expected returns from the second best alternative use of resources that are foregone due to the scarcity of resources such as land,...