Accounting costs are often unsatisfactory from the economist's point of view because
a. they fail to allow for depreciation, the wearing out of capital assets during a period.
b. they often exclude the opportunity costs of the firm's equity capital.
c. accountants attempt to minimize costs in order to make profits look good.
d. accounting procedures are designed to overstate costs in order to minimize business tax liability.
B
You might also like to view...
If a firm has a monopoly in both the production and distribution of a product and the managers of both the production and distribution divisions maximize profits, all of the following are true except which one?
A) Double marginalization will occur within the firm. B) The firm will maximize its total profit. C) The firm will not earn the maximum total profit. D) A successive monopoly will occur within the firm.
“Circuit breaker” rules halt trading when the Dow declines below its previous day’s closing value by a percentage amount for
A. one hour. B. two hours. C. the remainder of the trading day. D. All three of these periods.
Which of the following statements is false?
A) The Treasury bond information published under the column heading "Yield" is based on the ask price of the bond. B) The Treasury bond information published under the column heading "Yield" is based on the assumption that the bond is held to maturity. C) The Treasury bond information published under the column heading "Bid" indicates the price a buyer will pay if he buys the bond. D) The Treasury bond information published under the column heading "Bid" is the price a buyer will receive if she sells the bond.
Refer to the below table and information. What is the marginal revenue product of the fifth worker?
Refer to the above table and information. What is the marginal revenue product of the fifth worker?
A. $6
B. $7
C. $8
D. $9