Economic profits are:
a. less than accounting profits if implicit costs are greater than zero.
b. less than accounting profits even if implicit costs are zero
c. greater than accounting profits if implicit costs are greater than zero.
d. greater than accounting profits even if implicit costs are zero.
a
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Measured wealth is a less accurate indicator of economic inequality than is measured income because measured wealth excludes
A) owner-occupied housing. B) financial assets. C) depreciation. D) human capital.
The convergence hypothesis suggests that poor countries may close the income gap with rich countries.
Answer the following statement true (T) or false (F)
Two identical firms compete as a Cournot duopoly. The inverse market demand they face is P = 80 ? 4Q. The cost function for each firm is C(Q) = 8Q. The price charged in this market will be:
A. $32. B. $12. C. $56. D. $48.
Diminishing marginal returns occur when
A. all inputs are decreased. B. one input is increased and the others are held constant. C. all inputs are increased. D. one input is decreased while the other is increased.