A firm has $200 million in total revenue and explicit costs of $190 million. Suppose its owners have invested $100 million in the company at an opportunity cost of 10 percent interest rate per year. The firm's economic profit is:
a. $400 million.
b. $100 million.
c. $80 million.
d. zero.
d
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The Southern economy ________________ from the damages of the Civil War.
A. quickly recovered B. experienced no lingering effects C. suffered decades of economic transition
Suppose the private sector wishes to hold a constant level of real high-powered money
This means that with an ongoing inflation of p percent, each year the government treasury can obtain goods from the private sector in exchange for ________ p times the existing high-powered money, a government revenue source called ________. A) creating, seignorage B) creating, transfer payments C) collecting, seignorage D) collecting, transfer payments
National income and domestic product must be equal
a. True b. False Indicate whether the statement is true or false
The federal government's principal tool in altering consumer spending is changing
a. corporate income taxes. b. federal sales taxes. c. unemployment insurance benefits. d. personal income tax rates.