11. To the economist total cost includes: a. explicit and implicit costs, including a normal profit. b. neither implicit nor explicit costs. c. implicit, but not explicit, costs. d. explicit, but not implicit, costs. 12. Implicit and explicit costs are different in that: a. explicit costs are relevant only in the short run. b. implicit costs are relevant only in the short run. c. the latter refer to nonexpenditure costs and the former to out-of-pocket costs. d. the former refer to nonexpenditure costs and the latter to out-of-pocket costs. 13. To economists the main difference between the short run and the long run is that: a. the law of diminishing returns applies in the long run, but not in the short run. b. in the long run all resources are variable, while in the short run at least one resource is fixed. c. fixed costs are more important to decision making in the long run than they are in the short run. d. in the short run all resources are fixed, while in the long run all resources are variable. 3 14. The basic difference between the short run and the long run is that: a. all costs are fixed in the short run, but all costs are variable in the long run. b. the law of diminishing returns applies in the long run, but not in the short run. c. at least one resource is fixed in the short run, while all resources are variable in the long run. d. economies of scale may be present in the short run, but not in the long run. 15. Marginal product is: a. the increase in total output attributable to the employment of one more worker. b. the increase in total revenue attributable to the employment of one more worker. c. the increase in total cost attributable to the employment of one more worker. d. total product divided by the number of workers employed. 16. The law of diminishing marginal products indicates that: a. as extra units of a variable resource are added to a fixed resource, marginal product will decline beyond some point. b. because of economies and diseconomies of scale a competitive firm's long-run average total cost curve will be U-shaped. c. the demand for goods produced by purely competitive industries is downsloping. d. beyond some point the extra utility derived from additional units of a product will yield the consumer smaller and smaller extra amounts of satisfaction.