Donnie's Donuts incurs $450,000 per year in explicit costs and $200,000 in implicit costs. The bakery earns $800,000 in revenues and has $2 million in net worth. Based on this information, what is the accounting profit for Donnie's Donuts?
A) $150,000
B) $350,000
C) $600,000
D) $1.2 million
Answer: B
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The Federal Funds Committee executes the purchases and sales of government securities decisions of the Federal Reserve
a. True b. False Indicate whether the statement is true or false
Related to the Economics in Practice on page 196. The search engine business is subject to ________, which means that as the use of the search engine increases, the long-run cost to provide additional searches on that search engine will likely fall.
A. diminishing returns B. significant government regulation C. diseconomies of scale D. economies of scale
At a given output level, a temporary reduction in government purchases will
A. increase desired saving, causing the IS curve to shift down and to the left. B. increase desired saving, causing the IS curve to shift up and to the right. C. decrease desired saving, causing the IS curve to shift up and to the right. D. decrease desired saving, causing the IS curve to shift down and to the left.
If a firm's total revenue just covers its implicit and explicit costs of production, then
A. the economic cost of production exceeds total revenue. B. accounting profit is zero. C. economic profit is zero. D. total revenue exceeds the economic cost of production.