When economic profits are zero, accounting profits
A. must be positive.
B. will be negative.
C. will equal zero.
D. could be positive, negative or zero.
Answer: A
You might also like to view...
Refer to Figure 9-2. The loss in domestic consumer surplus as a result of the tariff is equal to the area
A) C + D + E + F. B) B + D + E + F. C) D + E + F. D) B.
The short run is
A) usually 3 - 6 months. B) dependent on the characteristics of the industry. C) when a firm has to decide whether or not to exit. D) identical to the long run for most firms.
The relationship between prices and the corresponding quantities supplied is shown in a:
a. supply schedule. b. demand schedule. c. price-earnings ratio. d. production possibilities curve. e. total output schedule.
A production function shows the least amount that a firm will produce given the amount of labor input.
Answer the following statement true (T) or false (F)