Economic profit is:
A. total revenues minus variable costs.
B. total revenues minus implicit costs.
C. total revenues minus explicit costs.
D. total revenues minus explicit costs minus implicit costs.
Answer: D
You might also like to view...
The self-correcting tendency of the economy means that falling inflation eventually eliminates:
A. exogenous spending. B. recessionary gaps. C. expansionary gaps. D. unemployment.
When the price of the good or service it produces rises, the firm's
A) demand for labor curve shifts rightward. B) demand for labor curve shifts leftward. C) demand for labor curve remains unchanged. D) output decreases.
These are the cost and revenue curves associated with a monopolistically competitive firm.
According to the graph shown, the monopolistically competitive firm will produce:
A. where MR = MC and will charge according to D. B. where D = MC and will charge according to MR. C. where D = MC and will charge according to ATC. D. where MR = MC and will charge according to ATC.
Suppose a bank has total assets of $4,000,000,000, of which $1,000,000,000 are cash assets and government securities with a "risk weight" of 0% and $3,000,000,000 are loans with a risk weight of 50%
The bank has total deposits and other liabilities of $3,500,000,000. The bank's risk-based capital ratio is A) 14.3%. B) 25.0%. C) 33.3%. D) 37.5%.