Econ 101: Final Study Guide Rated A+

Which of the following statements about opportunity cost is FALSE? A) Opportunity cost may be larger than monetary cost. B) Opportunity cost includes both explicit and implicit costs. C) The real or opportunity cost of something is what you must give up to get it. D) Opportunity cost is synonymous with explicit cost. {Ans: D) Opportunity cost is synonymous with explicit cost.}In the long run, all costs are: A) fixed. B) constant. C) variable. D) marginal. {Ans: C) variable.}Once diminishing returns have set in, as output increases, the total cost curve: A) gets steeper. B) gets flatter. C) becomes horizontal. D) increases at first, and then decreases. {Ans: A) gets steeper.}You own a deli. Which of the following is a decision most likely to be made in the LONG run at your deli? A) You order more breadsticks. B) You order more soft drinks for next week. C) You renovate the second floor of your building to increase the size of the dining room. D) You advertise for part-time workers. {Ans: C) You renovate the second floor of your building to increase the size of the dining room.}Economic profit is: A) less than accounting profit if