Suppose a firm's total revenue is $1,000,000. The firm has incurred explicit costs of $750,000
There is also $50,000 of forgone wages by the owner, $10,000 of forgone interest by the owner, $3,000 worth of economic depreciation, and $20,000 worth of normal profit. What is the firm's economic profit? A) $250,000
B) $200,000
C) $190,000
D) $167,000
E) $180,000
D
You might also like to view...
If the demand for a product increases and the supply of the same product decreases, the equilibrium price will increase
Indicate whether the statement is true or false
Refer to Table 19-9. Suppose that the above table represents the goods and services produced in a very simple economy in 2016. Assume that steel is used as an input in the production of autos. Using that information, calculate GDP for the year 2016
What will be an ideal response?
With a human capital investment (such as the investment in going to college), the most important cost tends to be
A. the opportunity cost of not working. B. taxes. C. books and equipment. D. foregone leisure.
According to the United Nations, approximately what percentage of the world's income is received by the richest one-fifth of the world's population?
A. 20 percent. B. 30 percent. C. 60 percent. D. 80 percent.