Accounting profits are calculated by subtracting which of the following from total revenues?
a. Explicit costs, including depreciation
b. Total costs
c. The sum of explicit and implicit costs
d. Implicit costs, excluding depreciation
a. Explicit costs, including depreciation
Accounting profits are based on total revenues minus explicit costs, including depreciation.
You might also like to view...
To sell one more unit of a good, a monopolist must
A) lower the price on the last unit only. B) lower the price on all units. C) raise the price only on the last unit sold. D) raise the prices on all goods.
Unemployment that occurs when there are not enough jobs for the number of people in the labor force is referred to as:
A. Frictional unemployment. B. Structural unemployment. C. Cyclical unemployment. D. Seasonal unemployment.
Related to the Economics in Practice on p. 647: Surveys by the bank of England suggest that two important factors in influencing consumer perceptions of inflation are ________ and ________.
A. the value of the British pound; the value of the euro B. gas prices; media attention to price increases C. interest rates; the unemployment rate D. food prices; the stock of money
The return to a factor that is in fixed supply is a pure rent.
Answer the following statement true (T) or false (F)