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·True/False (Indicate whether the sentence or statement is (a) true or (b) false

ID: 2429337 • Letter: #

Question

·True/False (Indicate whether the sentence or statement is (a) true or (b) false)

If an accountant and an economist .calculated profits for the same fhm the measure of profit determined by the accountant would be larger than the measure of profit calculated by the economist.

In the long-run, firms in perfectly competitive markets never earn an economic profit.

When a ciriJrer enters a crowded highway he increases the travel times of all other drivers on the highway. This is an example of a negative externality.

When one person enjoys the benefit of a tomado siren, she reduces the benefit to others.

Diminishing marginal productivity is a short-run p)lenomenon and diseconomies of scale are a long-run phenomenon.

Elephant populations are more likely to thrive in a country where elephants roam free and hunting is illegal than in a country where elephants can be legally hunted by tribes with regional property rights to the elephant herds.

Explanation / Answer

Ans: (True ),If an accountant and an economist .calculated profits for the same fhm the measure of profit determined by the accountant would be larger than the measure of profit calculated by the economist.

Explanation:

Accounting profit = Total revenue - Explicit cost

Economic Profit = Total revenue - Explicit cost - Implicit cost

Ans: (True), In the long-run, firms in perfectly competitive markets never earn an economic profit.

Explanation:

Under perfectly competitive markets , firms will earn normal or zero economic profit.

Ans: (True ) ,When a ciriJrer enters a crowded highway he increases the travel times of all other drivers on the highway. This is an example of a negative externality.

Ans :( False ) , When one person enjoys the benefit of a tomado siren, she reduces the benefit to others.

Explanation :

Tomado siren is a public good.

Ans : (True ) Diminishing marginal productivity is a short-run p)lenomenon and diseconomies of scale are a long-run phenomenon.