Suppose you own a small business. Last month, your total revenue was $6,000. In addition, you paid: $1,000 in monthly rent for office space,$200 in monthly rent for equipment,$3,000 to your workers in wages for the month, and$1,000 for the supplies you used that month. If you correctly determine that your economic profit last month was negative $200, then it must be true that:
A. your implicit costs are $200 per month.
B. you do not have any implicit costs.
C. the rent you pay on your equipment is an implicit cost.
D. your implicit costs are $1,000 per month.
Answer: D
You might also like to view...
Which of the following will not increase when net taxes decrease?
a. Saving b. Disposable income c. Consumption d. Government expenditure e. GDP
Which of the following is a property of a public good?
a. A public good is free from externalities. b. Many individuals benefit simultaneously. c. A public good is not subject to free riders. d. A public good is established by law.
In order to avoid the imposition of other types of trade barriers, foreign producers will sometimes agree to voluntary export restraints. With voluntary export restraints, foreign producers
A) agree to meet specific quality standards required by the importing country. B) limit their exports to a country. C) pay a tax on all products they export. D) must agree to import an equal quantity of products that they export.
The aggregate demand curve slopes downward because at lower price levels the purchasing power of consumers' assets ________, which ________ real wealth.
A. increases; increases B. decreases; increases C. increases; decreases D. decreases; decreases