If Adam's Rib Joint took in $35,000 in revenue last week and had out-of-pocket expenses of $31,500:
a. it is clear that Adam made an economic profit of $3,500
b. Adam really didn't make any economic profit since he needs to put the difference between revenue and out-of-pocket expenses back into the firm.
c. Adam clearly did not earn an economic profit.
d. it is not clear whether Adam earned any economic profit last week because it depends on the magnitude of the implicit costs.
d
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Rick was charged $200 while applying for an insurance claim for his damaged car. This is an example of ________
A) a subsidy B) a copayment C) a brokerage D) a dividend
If you take out a mortgage with a nominal interest rate of 8% and you expect the inflation rate to be 2%, then you expect to pay a real interest rate of
A) 4%. B) 6%. C) 10%. D) 16%.
Classical economists believe that an increase in the money supply will lead to:
a. only c and d. b. all of the following. c. an increase in the price level. d. an increase in nominal GDP. e. an increase in real GDP.
In the graph below, the price of capital is $500 per unit. Which of the following combinations of capital and labor lies on the expansion path?
A. 500L, 100K B. 1100L, 220K C. 800L, 160K D. both a and b E. none of the above