If the explicit costs to a firm to produce a unit of output are $6 and the firm sells 200,000 units of output for $9 per unit, the accounting profit received by the producer is
A) $1.2 million.
B) $850,000.
C) $1.8 million.
D) $600,000.
D
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Assume that the supply curve is horizontal because marginal cost is constant at $10. John, Robert, and Jimmy each value one compact disc at $20 but only Jimmy and John value a second compact disc (Jimmy at $5 and John at $15). If a social planner dictates that two compact discs be produced and distributed to John, Robert, and Jimmy, then even if the compact discs are allocated based on demand, this market will lose out on $___ of value.
a. $5. b. $10. c. $15. d. There will be no lost value as five compact discs is the efficient level.
In the Keynesian liquidity preference framework, a rise in the price level causes the demand for money to ________ and the demand curve to shift to the ________, everything else held constant
A) increase; left B) increase; right C) decrease; left D) decrease; right
In a market economy, income depends mostly on
a. productivity b. luck c. age d. sex e. discrimination
The existence of a universal law of scarcity creates pressures on societies to
a. use their resources according to government plans. b. economize in the use of their resources. c. allocate their resources equitably. d. exploit their resources.