If a firm goes out of business because of negative economic profits, its books
A) might indicate a positive accounting profit.
B) might indicate that opportunity costs were zero.
C) might indicate that taxes are too high.
D) might suggest a mistaken value of explicit costs.
A
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Explain the idea of a tradeoff and think of three tradeoffs that you have made today
What will be an ideal response?
The purchase of a new automobile is included in
A) investment expenditures. B) consumption expenditures on durable goods. C) consumption expenditures on nondurable goods. D) consumption expenditures on services.
The price elasticity of demand for a vertical demand curve is:
A. perfectly elastic. B. perfectly inelastic. C. unitary elastic. D. elastic.
Sue is maximizing her utility. Her MUx/Px = 10 and MUy = 40. Then the price of Y must be
A. $1. B. $4. C. $10. D. $40.