When a firm makes zero economic profit, it means that:
a. the firm is covering implicit costs alone
b. the firm is covering the total opportunity costs of its resources.
c. the firm is covering explicit costs alone.
d. the firm is running at an accounting loss.
b
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What is a cap-and-trade policy? (Be certain to mention marketable permits.) Suppose there are two firms in an area, each emitting tons of sulfur
The government decides on a target level of 200 tons of sulfur, and gives each firm a permit to emit 100 tons of sulfur. Suppose Firm A is very efficient and can reduce pollution by 100 tons with an abatement cost of $500. Firm B has an older plant, so it will cost Firm B $1,000 to reduce emissions by 100 tons. What will occur with marketable permits?
All inferior goods have upward-sloping demand curves
a. True b. False Indicate whether the statement is true or false
Which of the following transactions would be included in the U.S. balance of payments?
a. A U.S. resident buys a bus ticket from Dallas to El Paso, Texas. b. U.S. manufacturers sell thousands of cars to Canadian buyers. c. A U.S. resident pays a fee to obtain a passport to travel abroad. d. Canadian oil companies pay a Dutch firm to design an oil pipeline.
The invisible hand refers to
A. Intervention in the economy by the government bureaucrats we do not see and over whom we have no control. B. The person who has the responsibility to coordinate all the markets in a market economy. C. Undiscovered natural resources. D. The allocation of resources by market forces.