Economic profits are maximized at the point at which
A) marginal revenues equal marginal costs.
B) accounting profit exceeds economic profit.
C) total revenues are greater than total costs.
D) accounting profits are equal to zero.
Answer: A
You might also like to view...
You and your roommate go to a Sunday brunch at the local restaurant. All you can eat for $4.95. You enjoyed your meal. Your roommate didn't care for it at all. Each of you paid your bill in full. Who incurred a sunk cost?
A) Both you and your roommate B) Only you C) Only your roommate D) Neither of you
An airline can profit by offering standby customers an unsold seat at a substantial discount just before takeoff because
A. additional passengers are needed to balance the load. B. the marginal cost of additional passengers is very small. C. additional passengers add little to fixed costs. D. such passengers add more to profits than do those with reserved seats.
If firms sell exactly what they expected to sell, all of the following will be true except
A) aggregate expenditure will be greater than GDP. B) there is no unplanned change in inventories. C) aggregate expenditure will be equal to GDP. D) inventories will not change, and GDP and employment will remain stable.
When each stockholder incurs a tax liability on his or her share of the earnings of a corporation (whether or not the earnings are distributed), this is known as
A. being fully funded. B. full integration. C. full loss offset. D. fully imputed rent.