If the value added of a firm is positive, will the firm necessarily have positive profits?
What will be an ideal response?
No. Value added equals the price of the firm's product minus the cost of intermediate goods. The intermediate goods are converted to the firm's profits by the application of such resources as labor, capital, and entrepreneurship. Profit is the difference between the total sales revenue and the opportunity cost of all the resources used to make the product.
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The firm in the figure above is ________ that is equal to ________
A) making an economic profit; $5.14 × 7 B) making an economic profit; $3.00 × 7 C) incurring an economic loss; $5.14 × 7 D) incurring an economic loss; ($5.14 - $3.00 ) × 7 E) making an economic profit; ($5.14 - $3.00 ) × 7
Which of the following is not discussed as a job of a vehicle currency?
A) cross-border bank transactions B) international money market funds C) international bonds and notes D) All of the above are vehicle currency uses.
For firms that sell one product in a perfectly competitive market, average revenue is:
A. calculated by total output divided by total revenue. B. equal to marginal cost. C. equal to the market price. D. greater than market price.
The maximum welfare benefit levels in most states
A. by law are 1.5 times the poverty income threshold. B. by law must equal the poverty income threshold. C. are significantly above the poverty income threshold. D. are significantly below the poverty income threshold.