Suppose that during a given time period the implicit cost for a business was $1,500 and that the explicit cost was $6,000. Also suppose that the firm sold 1,000 units of its products at $8 per item. We can conclude that the firm's
A. accounting profit was $2,000, and its economic profit was $500.
B. accounting profit was $2,000, and economic profit was -$500.
C. accounting and economic profits were both $2,000.
D. accounting profit was -$500, and economic profit was $2,000.
Answer: A
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Refer to the scenario above. If both economies have the same depreciation rate, then which of the following statements will be true?
A) Economy A will have a greater capital stock and a lower GDP than economy B. B) Economy A will have a greater capital stock and GDP than economy B. C) Economy A will have a lower capital stock and GDP than economy B. D) Economy A will have a lower capital stock and a greater GDP than economy B.
Which of the following is not a basic characteristic of a perfectly competitive market?
a. a large number of buyers and sellers b. significant nonprice competition among firms c. a standardized product produced by firms d. no barriers to entry e. no barriers to exit
A concentration ratio of 100 would imply that the industry has ___________.
A. one firm B. no more than four firms C. at least four firms D. more than four firms
Which of the following does not contribute to the failure of the law of one price?
A. Technical specifications B. Transportation costs C. Tariffs D. Tastes are similar across countries