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Implicit cost of running a business

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Determine if each of the following economic statements is correct or incorrect and explain your answers.

(a) Increasing energy cost incurred in production will push up the implicit cost of running a business.

(b) A company can reduce its rental space immediately if its business is below expectation in the short run.

(c) In the long run, there is no fixed factor input in a business.

(d) When output of a firm increases, the fixed cost will not increase in the short run.

Reference no: EM131294901

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