Question

tion 26 An accounting profit is higher than an economic profit by the amount of explicit costs. met ered ed out of Select one: © True O False lag stion stion 27 yet wered A rightward shift in the supply curve for a product could be caused by all of the following except one. Which is the exception? ked out of Flag estion Select one: a. The expectation by suppliers that the future price of the product will be higher. b. A decrease in the price of a product that is a substitute in production c. A decrease in the price of a productive resource used in its manufacture. d. A technological improvement in manufacturing methods. Eestion 28 ot yet Suppose both demand and supply increases by the same magnitude? Which of the following statement is not true? swered arked out of 00

Answer 1

Answer)

1) the statement is False.

The accounting profit is greater than economic profit by the amount of opportunity costs and not explicit costs.

2) The fall in the price of a good that is a substitute in production will not cause a rightward shift in supply. Instead, the supply curve will shift leftward since the quantity demanded will decrease.

So, option B is correct.

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