Single-owner proprietorships often unintentionally exaggerate their profits because they
A. look at after-tax instead of pre-tax costs.
B. neglect to consider the opportunity cost of the owner's labor.
C. pay their bills late and therefore incur large interest charges.
D. forget their explicit losses.
Answer: B
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What are the Nash equilibrium strategies for Firm A and Firm B respectively?
a. Low, Low b. Low, High c. High, Low d. High, High
In order to raise the rate of economic growth we would need to
A. increase the level of capital. B. reduce the level of labor. C. spend more on military goods. D. spend more on consumer goods.
At an output of 6, ATC = $30, MC = $25, MR = $25. At that output the firm is
A. maximizing its profits. B. minimizing its losses. C. operating at its break-even point. D. operating at its shutdown point.
Which of the following is NOT a non-price determinant of demand?
A) the price of the good or service B) tastes and preferences C) expectations of future prices D) prices of related goods and services