If butter has an income elasticity equal to 0.75, then butter is an inferior good.
a. True
b. False
Indicate whether the statement is true or false
Question 2
An understanding of opportunity costs is important to understanding:
a. how to calculate the total revenue generated by a firm.
b. how to assess the economic profitability of a firm.
c. How to calculate the tax liability of a firm.
d. how accountants calculate accounting profits.
