A normal profit for a self-employed entrepreneur is 1. an opportunity cost. II. part of the implicit rental rate of the funds invested in the businee. Select one: a. only! O b.only !! O c both I and II d. neither I nor !!

1. Which of the following statements is true? a. the cost of producing output in the short run is always strictly less than the cost of production in the long run b. the cost of producing output in the short run is always strictly greater than the cost of production in the long run c. the cost of producing output in the short run is greater than or equal to the cost of production in the long run d. the cost of producing output in the short run is less than or equal to the cost of production in the long run

18. Which would be an implicit cost for a firm? The cost of: A. Property insuranceB. Property tax C. Raw materialsD. Wages foregone by the owner of the firm

4. COST RELATIONSHIPS. A firm's total costs can be broken down into fixed costs (e.g., rent) and variable costs (e.g., payroll), so TC = FC + VC. Dividing by quantity converts these to averages, so TC/Q = FC/Q + VC/Q, or ATC = AFC + AVC. The additional cost incurred by producing one additional unit is the marginal cost, so MC = ATC/AQ, where the Greek letter delta (A) means "a change in." Here is a table showing the various costs for a simple firm that sells a product using a building (capital, a fixed input) and workers (labor, a variable input). Assume that the price of labor is 20 and the price of capital is 120. Use these three cost relationships to complete the table. Total Total Average Variable Cost, Сapital, Output, Q Labor, Total Average Fixed Average Total Cost, Marginal Cost, MC Variable K Fixed Cost, TC Cost, Cost, TFC Cost, TVC AVC AFC АТС 1 120 N/A N/A N/A N/A 1 2 1 160 3 1 20 3 6. 1 40