Which of the following is true if the opportunity cost of producing a particular good is less than its accounting profit?
A. Economic profit is zero.
B. Economic profit is negative.
C. Economic profit is positive.
D. Economic profit cannot be determined.
Answer: C
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Stimulating demand will improve the unemployment picture but
A. worsen inflation. B. decrease inflation. C. have no impact on inflation. D. None of the above is correct.
The determinants of aggregate supply:
A. are consumption, investment, government, and net export spending. B. explain why real domestic output and the price level are directly related. C. explain the three distinct ranges of the aggregate supply curve. D. include resource prices and resource productivity.
Decisions to reduce the money supply are made by ________ and are an example of ________ policy.
A. the President; monetary B. the Federal Reserve; fiscal C. Congress; monetary D. the Federal Reserve; monetary
A firm's marginal cost is $82, its average total cost is $50, and its output is 800 units. Its total cost of producing 801 units is
A) less than $40,000. B) between $40,000 and $40,050. C) between $40,050 and $40,080. D) greater than $40,080.