Tom quit his $65,000 a year corporate lawyer job to open up his own law practice. In Tom's first year in business his total revenue equaled $150,000 . Tom's explicit cost during the year totaled $85,000 . What is Tom's economic profit for his first year in business?
a. $0
b. $20,000
c. $65,000
d. $85,000
a
You might also like to view...
Which of the following is false?
a. A production possibilities curve represents the potential total output combinations of any two goods for an economy. b. On a production possibilities curve, we assume that the economy has a given quantity and quality of resources and technology available to use for production. c. If an economy is operating inside its production possibilities curve, it is not at full capacity, and is operating inefficiently. Such an economy's actual output is less than potential output. d. By putting unemployed resources to work or by putting already employed resources to better uses, we could shift out the production possibilities curve.
"Anticompetitive practices" are actions by a powerful firm that:
a. threaten to destroy competitors b. force competitors to compete less vigorously c. prevent the entry of new rivals. d. all of these are true.
Which of the following is true?
a. Competitive forces are present even in markets with high barriers to entry. b. Quality competition is an unimportant element of the competitive process. c. Profitability and high prices discourage technological change and the development of substitute products. d. Government regulations have substantially increased the quality of American manufacturing products in recent years.
A financial account surplus implies that a countries assets are falling or its liabilities are rising
a. true b. false