Which of the following statements is FALSE?
A) A correct measure of a firm's economic cost includes both accounting and opportunity cost.
B) The accounting profit earned by a firm will always be the same as its economic profit.
C) The major difference between accounting and economic profit is that accounting profit does not reflect the opportunity cost of using resources.
D) The accounting profit of a firm is its total revenue minus total explicit costs.
Answer: B
You might also like to view...
Statistical studies in the United States have reached the conclusion that for most workers the response of labor supply to wage changes is
a. quite strong. b. not very strong. c. inverted. d. always zero.
If the unemployment rate rises, which policies would both be appropriate to reduce it?
a. increase taxes, increase government spending b. increase taxes, decrease government spending c. decrease taxes, increase government spending d. decrease taxes, decrease government spending
Refer to the budget line shown in the diagram above. If the consumer's money income is $20, the:
A) prices of C and D cannot be determined. B) price of C is $2 and the price of D is $4. C) consumer can obtain a combination of 5 units of both C and D. D) price of C is $4 and the price of D is $2.
Demand curves are formed by ______.
a. minimum prices people are willing and able to sell at b. maximum prices people are willing and able to pay c. minimum prices people are willing and able to pay d. maximum prices people are legally able to sell at