Question

QUESTION 9 If the elasticity of demand is .5, then a 20% change in price will lead to a 10% change in quantity demanded. True False 2.5 points

QUESTION 10 Economic cost differs from accounting cost because accountants do not consider implicit costs. True False 2.5 points

QUESTION 11 Implicit cost is the opportunity cost of the inputs that do not require monetary payment. True False 2.5 points

QUESTION 12 Diminishing marginal returns always sets in with the hiring of the first worker. True False

Answer 1

9) E = 0.5

As 0.5 = 10/20

The statement is True

10) Accounting cost = Explicit cost

Economic cost = Explicit + Implicit cost

The statement is True

11) True as the implicit cost is the input cost that does not require monetary payments

12) False as the first unit will increase the output at an increasing rate.