Economic profit is the difference between
A. accounting profit and explicit costs.
B. total revenue and the opportunity cost of all of the resources used in production.
C. total revenue and the implicit costs of using owner-supplied resources.
D. accounting profit and the opportunity cost of the market-supplied resources used by the firm.
Answer: B
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A demand curve with an elasticity of 1.0 is said to be an elastic demand curve.
Answer the following statement true (T) or false (F)
If the demand curve a firm faces shifts to the right, usually:
a. it would be impossible to tell whether the marginal revenue curve shifts. b. the marginal revenue curve would shift to the left. c. the marginal revenue curve would shift to the right. d. the marginal revenue curve would not shift.
A public good is:
A. rival in consumption and excludable. B. not rival in consumption, but excludable. C. rival in consumption, but not excludable. D. not rival in consumption and not excludable.
This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
According to the graph shown, if this economy were to open to trade, surplus would:
A. increase for the consumer. B. increase overall. C. transfer from producer to consumer. D. decrease for the producer.