If a firm is earning negative accounting profits, it implies
a. That the firm's economic profits are necessarily zero
b. That the firm's economic profits are necessarily positive
c. That the firm's economic profits are necessarily negative
d. Accounting profits alone cannot determine economic profits
d
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What are some reasons why the unemployment rate is typically lower in the United States as compared to Canada and some Western European countries?
What will be an ideal response?
Sarah buys little stuffed animals for $5 each. They come in different varieties. If the producer stops making (retires) a certain variety, a stuffed animal of that variety will be worth $100; otherwise it is worth $0
There is 25% chance that any variety will be retired. For the purchase of an individual animal, what is the value to Sarah of knowing ahead of time whether or not that variety will be retired?
A firm's total cost is $10,000. Its variable cost is $5,500. What is the firm's fixed cost?
a. $2.22 b. $3,500 c. $4,500 d. $5,500 e. none of the above
Which of the following provides a strong incentive to supply dollars on the foreign exchange market?
A. To invest in U.S. assets B. To take advantage of higher inflation rates in other countries C. To purchase goods and services produced abroad D. To get a lower return paid on foreign currencies that is not subject to the risk associated with exchange-rate fluctuations