T-Mobile 1:40 PM More... Open in \"Pages\" 5. Airlines charge business travelers
ID: 1103675 • Letter: T
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T-Mobile 1:40 PM More... Open in "Pages" 5. Airlines charge business travelers more than leisure travelers because there is a more O a. elastic supply of business travel. b. inelastic supply of business travel. c. elastic demand for business travel. d. inelastic demand for business travel. 6. Cash expenditures a firm makes to pay for resources are called () a. implicit costs. b. explicit costs. c. normal profit. d. opportunity costs. 7. Economic profits are equal to () a, total revenues minus fixed costs. b. total revenues minus the costs of raw materials. c. total revenues minus the opportunity costs of all inputs. d. gross profit minus selling and operating expenses. 8. The main difference between the short run and the long run is that () a. firms earn zero profits in the long run. b. the long run always longer c. in the short run, some inputs are fixed. d. in the long run, all inputs are fixed. refers to a time period of one year or 9. The law of diminishing returns only applies in cases where ) a. there is increasing scarcity of factors of production. b. the price of extra units of a factor is increasing. c. there is at least one fixed factor of production. d. capital is a variable input. 10. Marginal cost can be defined as the() a. change in total fixed cost resulting from one more unit of production. b. change in total variable cost resulting from one more unit of production. c. change in average total cost resulting from one more unit of production. d. change in average variable cost resulting from one more unit of production.Explanation / Answer
Ans5) d is the correct option. Inelastic demand for business travels. An inelastic demand means the demand does not decrease or increase with a fall or increase in price. Less responsive to change in prices.
Ans6) b is the correct option. Cash expenditures a firm makes to pay for resources are called Explicit costs An explicit cost is a direct payment made to others in the course of running a business, such as wage, rent and materials
Ans7) c is the correct option. Total revenue minus opportunity costs is all inputs. An economic profit or loss is the difference between the revenue received from the sale of an output and the opportunity cost of the inputs used. In calculating economic profit
Ans8) c is the correct option. In the short run some inputs are fixed. In the long run all the inputs are considered variable
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