Answer:
If you drop a course after the refund date, the nonrefundable tuition that you have paid is a sunk cost.
5. False.
According to economists, profit maximization is the primary goal of firms, not sales maximization. While sales are an important factor in generating profits, firms aim to maximize profits by producing goods or services that generate the highest possible revenue at the lowest possible cost.
6.
False.
The difference between economic profit and accounting profit is due to the inclusion of implicit costs, not just opportunity costs of capital. Accounting profit only considers explicit costs, such as wages, rent, and materials, while economic profit takes into account both explicit and implicit costs. Implicit costs include opportunity costs, which is the value of the next best alternative foregone by choosing a particular course of action. These could include the cost of foregone wages or the forgone return on invested capital.
7.False.
A worker's marginal product is the increase in total output that results from the worker being hired. Marginal product is a measure of the additional output that is generated by adding one more unit of labor, holding all other inputs constant. It is used by firms to determine the optimal level of employment, as it helps to identify the point at which the marginal product of labor is equal to the marginal cost of labor. By contrast, marginal profit is the increase in total profit that results from producing one more unit of output, and it takes into account both the additional revenue and the additional cost of producing that unit.