Economic profits are equal to
A. total revenues, after tax, minus cost of goods sold.
B. total revenues minus the implicit and explicit costs of all inputs used.
C. total revenues minus the opportunity cost of labor.
D. total revenues minus total fixed costs.
Answer: B
You might also like to view...
The best time to purchase the stock of a corporation capable of generating large earnings in the future is when
A) everyone expects its future earnings to be larger than they are now. B) the price of the stock is lower than it has been in recent years. C) the price of the stock is higher than it has been in recent years. D) you alone expect its future earnings to be larger than they are now. E) you know the corporation has already started to generate large earnings.
What is the relationship between the natural unemployment rate, the unemployment rate, potential GDP, and actual GDP?
What will be an ideal response?
If Debbye is willing to pay $50 for a pair of shoes but only has to pay $20 because the shoes are on sale, then her consumer surplus on that pair of shoes is
a. $50 b. $20 c. $70 d. $30 e. $25
The production possibilities frontier illustrates
A. the constant rate of technological progress. B. the fundamental concept of scarcity. C. the rapid growth of the U.S. economy. D. that guns always trade for butter.