Economic profits are calculated by subtracting:
A. explicit costs from total revenue.
B. implicit costs from total revenue.
C. implicit costs from normal profits.
D. explicit and implicit costs from total revenue.
D. explicit and implicit costs from total revenue.
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The private financial market where banks borrow and loan reserves to meet the minimum research requirements is called:
A) federal funds market. B) loanable funds market. C) discount loans market. D) repo market.
The real rate of interest measures the ________ of capital investment.
A. opportunity cost B. value of the marginal product C. relative price D. marginal benefit
The IS curve illustrates all combinations of domestic output levels and interest rates for which
A. the domestic product market is in equilibrium. B. the domestic money market is in equilibrium. C. there is full employment. D. there is a zero balance in the country's official settlements balance.
Refer to the above figure. If the farmer is producing 4,000 bushels of beans and 38,000 bushels of wheat, then we know the farmer
A. is inefficient because point a is the most efficient point on the curve. B. must be using more resources than were assumed available in constructing the graph. C. is using resources efficiently. D. is producing too much wheat.