Accounting profit is equal to
a. marginal revenue minus marginal cost.
b. total revenue minus the explicit cost of producing goods and services.
c. total revenue minus the opportunity cost of producing goods and services.
d. average revenue minus the average cost of producing the last unit of a good or service.
b
You might also like to view...
Refer to Figure 5-2. The private profit-maximizing quantity for the firm is
A) Qa. B) Qb - Qd. C) Qb. D) Qd.
Installing software to limit screen time, forcing you to uninstall it every time you reach the limit, is an example of:
A. increasing the cost of a vice. B. a commitment device. C. can be explained through behavioral economics. D. All of these are true.
Other things equal, an increase in aggregate supply will cause:
a. a decrease in equilibrium real GDP and a decrease in the equilibrium price level. b. an economic contraction. c. an increase in equilibrium real GDP and an increase in the equilibrium price level. d. cost-push inflation. e. a reduction in unemployment and a decline in inflation.
If the selling price of a firm's product is $200 and the estimated average cost of producing this product is $150, what is the firm's markup?
A) 75 percent B) 33.33 percent C) 25 percent D) impossible to determine with the information given