If the economic profit generated by a firm is zero and its implicit costs are greater than zero, then
A. accounting profit is also zero.
B. accounting profit is less than zero.
C. new firms will enter the industry.
D. accounting profit is greater than zero.
Answer: D
You might also like to view...
The income per capita in Baltonia is 64,163 in Baltonian currency. If the price of a basket of goods worth $1 in the U.S. is 5.50 units of Baltonian currency, Baltonia's income per capita in purchasing power parity is:
A) $11,666. B) $10,257.48. C) $2,832. D) $15,624.50. The price of a given basket of goods in Country 1 is 10 karls. The price of the same basket of goods in Country 2 is 25 ritz and $2 in the U.S. Country 1 has a income per capita of 3,200 karls and Country 2 has a income per capita of 5,500 ritz.
Referring to Figure 19.2, the effect of a decrease in U.S. prices is represented by a movement from point
A) a to d. B) d to a. C) b to c. D) a to b.
Comment on the following statement: "When a firm retains earnings for investment purposes, it is actually saving on behalf of its shareholders."
What will be an ideal response?
An individual in the labor force whose employment was involuntarily terminated is
A) a job leaver. B) a job loser. C) a job reentrant. D) part of the PPI.