If a firm's implicit costs are greater than its explicit costs, it tells us nothing about whether a firm is earning economic or accounting profits
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
Which of the following is graphed as a horizontal line across levels of real GDP in the aggregate expenditures model?
A. The saving schedule B. The investment schedule C. The consumption schedule D. The investment demand curve
Long-run economic growth is the process by which productivity increases
A) the employment rate. B) the average standard of living. C) the size of the labor force. D) federal tax revenues.
The primary goal of supply-side economics is to
a. balance the federal budget. b. reduce the balance of payments deficit. c. reduce the money supply. d. reduce inflation and increase growth at the same time.
Which of the following statements best describes the price, output, and profit conditions of competitive price-searcher markets?
a. Price will equal marginal cost at the profit-maximizing level of output; profits will be positive in the long-run. b. Price will always equal average variable cost in the short run and either profits or losses may result in the long run. c. Marginal revenue will equal marginal cost at the short run, profit-maximizing level of output; in the long run, economic profit will be zero. d. Marginal revenue will equal average total cost in the short run; long-run economic profits will be zero.