A firm has explicit costs of $110,000 and total revenue of $120,000. Which of the following is true about the firm?
A) The firm might be making an economic profit but we need more information about implicit costs to know for sure.
B) The firm is definitely making an economic profit because it must be minimizing its opportunity cost.
C) The firm is incurring an economic loss if implicit costs are $10,000.
D) The firm is making a normal profit if implicit costs are $0.
E) The firm may be making an economic profit but only if implicit costs are negative.
A
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The ________ the desired reserve ratio, the ________ the ________ in the quantity of money created from an initial increase of $100,000 in the monetary base
A) smaller; larger; decrease B) larger; larger; decrease C) larger; smaller; decrease D) smaller; larger; increase E) larger; larger; increase
Use the above figure. The total cost earned by this monopolistically competitive firm is
A) $2,080. B) $3,150. C) $1,600. D) $1,900.
Suppose a tax on buyers has been imposed in the graph shown. Once the tax is in place, the sellers experience:
A. a decrease in supply.
B. an increase in supply.
C. a decrease in quantity supplied.
D. an increase in quantity supplied.
If the nominal interest rate is 10 percent and the inflation rate is 3 percent, then the real interest rate equals:
A. 13 percent. B. 10 percent. C. 3 percent. D. 7 percent.