If a firm is earning a negative economic profit, it means that:
A. the resources should not be invested in other business opportunities.
B. more profits could be earned with the same resources in another industry.
C. the opportunity cost is smaller than what the firm is earning.
D. it must be earning negative accounting profit.
B. more profits could be earned with the same resources in another industry.
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Based on the conventional view of fiscal policy and potential GDP in the long run, explain what happens to each of the following if the government runs a budget deficit:
a. the supply of loanable funds to the private sector b. long-term real interest rates c. the capital stock d. the investment rate e. potential GDP
Those individuals who rejected the U.S. tariff policy of the antebellum period did so for which of the following reasons? They
(a) Wanted to save domestic jobs in those industries reliant on imports. (b) Depended on imports for domestic production. (c) Wanted to protect relatively low consumer prices, advance free trade and boost economic efficiency. (d) All of the above.
Refer to the table shown, which shows the demand schedule for a firm that has a monopoly on the sale of computers in the country of Oz. If the marginal cost of producing computers is $1,000 no matter how many are produced and the monopolist seeks to maximize profit, it should set the price of computers at:Price of computers($)Quantity demanded per year5,0001004,0002003,0003002,0004001,000500
A. $2,000. B. $4,000. C. $3,000. D. $1,000.
Which of the following is not one of the basic economic questions that all economies must answer?
What will be an ideal response?