Economic profits are calculated as:
A. total revenue minus explicit costs.
B. total revenue minus all opportunity costs, explicit and implicit.
C. total revenue minus implicit costs.
D. None of these is true.
B. total revenue minus all opportunity costs, explicit and implicit.
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A specialized rice grower sells rice in two markets, the United States and Japan, and the marginal cost the same in both markets. The price elasticity of demand in the United States is -2.0, and the price elasticity of demand in Japan is -1.5
If the grower practices multimarket price discrimination, which country's consumers will pay a higher price and by how much?
Which of the following is not an automatic stabilizer:
a. Business profits taxes. b. Welfare payments. c. Government spending for new bridges and roads. d. All of the above are examples of automatic stabilizers.
If Canada's national saving exceeds its domestic investment, then Canada has
a. positive net capital outflows and negative net exports. b. positive net capital outflows and positive net exports. c. negative net capital outflows and negative net exports. d. negative net capital outflows and positive net exports.
When determination of rent is left to the market,
A. that rent price is almost entirely determined by the supply side. B. that price can settle at politically unpopular levels. C. land is fairly distributed among the members of society. D. the supply of land will be perfectly elastic.