On a bar graph comparing a firm's economic profit with its accounting profit, it will always be TRUE that
A. opportunity costs will be missing from the column depicting accounting profit.
B. total revenue will be greater in the column depicting accounting profit.
C. explicit costs will be greater in the column representing accounting profit.
D. explicit costs will be greater in the column representing economic profit.
Answer: A
You might also like to view...
Which of the following statements is true about the trends in the flow of international trade witnessed in India since its independence?
a. Trade liberalization was unable to boost India's economy in the first few decades of independence. b. Indian software exports now reflect an annual growth rate of an impressive 55 percent. c. The opening of trade and modern telecommunications allowed India's production set to expand and gain comparative advantage in software. d. Trade has enabled Indian engineers to command higher wages than most other nations specializing in software.
The mathematical equation: quantity of output supplied = natural rate of output + a(actual price level - expected price level), expresses
a. how the long run equilibrium adjusts to changes in money supply. b. how output deviates in the short run from its long run natural rate. c. how the short run aggregate supply curve shifts. d. how adverse shifts in aggregate supply can cause stagflation.
Georgie’s country is working to increase its economic growth rate by providing incentives for companies to build new factories. Georgie’s country is focused on increasing economic growth by improving its ______.
a. natural resources b. human capital c. physical capital d. technology
A manager who does not see his or her goal as the maximization of profit
A. may nevertheless maximize the value of the firm. B. will likely be replaced either by shareholders or by a takeover of the firm. C. represents a principle-agent problem. D. both b and c