Suppose that during a given time period the implicit cost for a business was $1,000 and that the explicit cost was $5,000. Also suppose that the firm sold 1,000 units of its products at $5 per item. We can conclude that the firm's
A) accounting profit was $5,000, and its economic profit was $0.
B) accounting and economic profits were both $0.
C) accounting profit was $0, and economic profit was $1,000.
D) accounting profit was $0, and economic profit was -$1,000.
Answer: D
You might also like to view...
How did the United States become a net debtor in the 1980s? Is our foreign debt a significant problem? Explain
What will be an ideal response?
Which of the following is not true of a pure monopoly?
a. Demand is negatively sloped b. Marginal revenue is less than price therefore the firm should consider raising its price until marginal revenue equals demand c. Marginal revenue is less than average revenue therefore the firm should consider adjusting its quantity until marginal revenue equals average revenue d. It is a price taker e. Its position is protected by significant barriers to entry
The tit-for-tat strategy only works for a prisoner's dilemma that:
A. has only one Nash equilibrium. B. does not have a Nash equilibrium. C. is played only one time. D. is repeated.
The equilibrium level of GDP is always accompanied by full employment and stable prices.
Answer the following statement true (T) or false (F)