Chapter 22 - The C of Production Extra Multiple Choice Questions for Review Implicit costs are A) qual to total fixed costs B) comprised entirely of variable costs C) payments for self-employed resources D) always greater in the short run than in the long run Which would be an implicit cost for a firm? The cost A) of worker wages and salaries for the firm B) paid for leasing a building for the firm C) paid for production supplies for the firm D) of wages foregone by the owner of the firm If a firm's revenues just cover all its opportunity costs, then A) normal profit is zero B) economic profit is zero C) total revenues equal its explicit costs D) total revenues equal its implicit costs Suppose a firm sells its product at a price lower than the opportunity cost of the inputs used to produce it. Which is true A) The firm will car accounting and economic profits B) The firm will face accounting and economic losses C) The firm will face an accounting loss, but cam economic profits D) The firm may cam accounting profits, but will face economic losses Suppose that a firm produces 200,000 units a year and sells them all for S10 each. The explicit costs of production are $1,500,000 and the implicit costs of production are $300,000. The firm has an accounting profit of A) $500,000 and an economic profit of $200,000 B) $400,000 and an economic profit of $200,000. C) $300,000 and an economic profit of $400,000 D) $200,000 and an economic profit of $500,000 The short run is a time period in which A) al resources are fixed B) the level of output is fixed to plant is variable