A firm that has positive economic profits has accounting profits that are
A) zero.
B) positive.
C) negative.
D) indeterminate without more information.
Answer: B
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Suppose that Oscar sells pork in a perfectly competitive market. The market price of pork is $3 per pound. The marginal revenue generated by Oscar from selling the 12th pound of pork would be
A. $4. B. $3. C. $36. D. Not enough information is given to answer this question.
Which of the following statements is/are correct?
I. Depository institution managers undertake riskier actions than they otherwise would because of the existence of deposit insurance. II. Because of the existence of deposit insurance, depositors in savings and loans and other banks have little incentive to investigate the financial stability of these institutions. A) I only B) II only C) both I and II D) neither I nor II
Firms that employ statistical discrimination in the labor market will earn higher profits in expectation than firms that do not discriminate (and have no effective screens).
Answer the following statement true (T) or false (F)
The ________ is the price of one good ________ the price of another good
A) relative price; times B) relative price; divided by C) budget; times D) budget; divided by