Economic profits are found by total revenues minus
A) explicit costs.
B) explicit and implicit costs.
C) implicit costs.
D) all opportunity costs.
B
You might also like to view...
When the price of bread increases by 3 percent, the quantity demanded of crackers increases by 2 percent. The cross elasticity of demand between crackers and bread is:
a. 0.67. b. 1.5. c. 2.5. d. 3.2. e. 5.0.
Consumer equilibrium occurs where the budget line is tangent to the:
a. lowest possible indifference curve. b. highest possible indifference curve. c. utility maximizing indifference curve. d. utility equalization indifference curve.
The consumption function shows the relationship between the income received by the economy’s households and the
a. amount they plan to spend on currently produced final output. b. amount of government spending. c. amount businesses plan to spend on investment. d. level of taxes on personal income.
Suppose the quantity demanded of ski boats falls from 4.0 million to 3.0 million as a result of an average price increase from $20,000 to $25,000 per boat. The absolute value of the price elasticity of demand is closest to
A. 0.29. B. 0.20. C. 0.78. D. 1.29.