"Economic profits are less than or at most equal to accounting profits." Do you agree or disagree? Explain
What will be an ideal response?
Agree. Economic profits are accounting profits less implicit costs, or the opportunity costs of inputs. Since the opportunity costs of capital and labor inputs are never negative, economic profits are less than or at most equal to accounting profits.
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Suppose the country of Mooland imposes a tariff on imported beef from the country of Aqualand. As a result of the tariff, the
A) price of beef in Mooland falls. B) quantity of beef exported by Mooland increases. C) quantity of beef imported by Mooland decreases. D) quantity of beef imported by Mooland increases.
A country has a comparative advantage when the opportunity cost of producing a good in terms of:
a. the monetary value of other forgone goods is lower than that of other nations. b. the monetary value of other forgone goods is greater than that of other nations. c. forgone output of other goods is higher than that of other nations. d. forgone output of other goods is lower than that of other nations. e. forgone output of other goods is equal to that of other nations.
A one-percent increase in the rate of inflation in an economy can increase the value of the GDP deflator of the economy by 10
a. True b. False Indicate whether the statement is true or false
What was the main reason the Fed stopped announcing growth targets for money aggregates in the early 2000s?
What will be an ideal response?