When accounting profits are positive, economic profits
A) must be positive.
B) will be negative.
C) will equal zero.
D) could be positive, negative or zero.
Answer: D
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Economic efficiency definitely occurs whenever
A) a firm cannot increase its output without increasing all its inputs. B) there are no implicit costs. C) the most modern technology is used in the production process. D) the firm produces a given output at the least cost.
Refer to Figure 3-8. The graph in this figure illustrates an initial competitive equilibrium in the market for apples at the intersection of D1 and S1 (point A)
If there is an increase in the wages of apple workers and an increase in the price of oranges, a substitute for apples, the equilibrium could move to which point? A) none of the points shown B) B C) C D) E
In the non-strategic sequential labor negotiation game:
a. The ability to commit to a strategy gives you an advantage b. The ability to commit to a strategy gives your opponent an advantage c. The ability to commit to a strategy is irrelevant d. Players should simply not commit to a strategy to obtain an advantage
When demand is elastic: a. price elasticity of demand is greater than one
b. consumers are relatively responsive to changes in price. c. the percentage change in quantity demanded resulting from a price change is greater than the percentage change in price. d. all of the above are correct.