Suppose that a business incurred implicit costs of $500,000 and explicit costs of $5 million in a specific year. If the firm sold 100,000 units of its output at $50 per unit, its accounting:
A. profits were $100,000 and its economic profits were zero.
B. profits were zero and its economic losses were $500,000.
C. losses were $500,000 and its economic losses were zero.
D. profits were $500,000 and its economic profits were $1 million.
Answer: B
You might also like to view...
Contractionary monetary policy refers to the Fed's decreasing the money supply and decreasing interest rates to decrease real GDP
Indicate whether the statement is true or false
Which of the following is an example of product differentiation on the basis of intangible aspects?
a. Offering a guarantee of satisfaction with a product b. Redesigning a product for consumer comfort c. Using herbal ingredients in a product d. Licensing the sale of a product
From 2000 to 2010, the public sector share of total output
A. Trended up for state and local governments and down for the federal government. B. Trended up for state and local governments and up for the federal government. C. Remained stable for the federal government but trended up for state and local governments. D. Remained stable for state and local governments but trended up for the federal government.
According to the law of demand, when the price of gas rises, Question 18 options:
A. people will drive more. B. oil refining companies record financial losses. C. car sales increase. D. people decrease the quantity of gas demanded, perhaps by driving less.