To the extent that a firm incurs an implicit cost of capital:
a. its economic profit will be less than its accounting profit.
b. its accounting profit will be less than its economic profit.
c. it will increase the optimal quantity to produce.
d. it will earn more of its profit in the future and less in the present
Ans: a. its economic profit will be less than its accounting profit.
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Since 1970 there has been a clear increase in the proportion of the banking industry assets made up of
A) mortgage loans. B) state and local government securities. C) cash. D) business loans.
If a publishing company purchases faster computers to speed up word processing,
a. the marginal product of its editors will increase, which will shift the demand for editors to the right b. the marginal product of its editors will increase, which will shift the demand for editors to the left c. the wages of its editors will increase, which will shift the demand for editors to the right d. the wages of its editors will decrease, which will shift the demand for editors to the right e. the supply of editors will decrease
Macroeconomics first developed as a new subfield of economics:
A. as a result of Adam Smith's publication of The Wealth of Nations in 1776. B. in response to the severe economic hardships of the Great Depression. C. when Adolf Hitler ordered economists to learn more about national economies. D. following the oil price increases of the 1970s.
Elvis values the first gravy sandwich at $5, the second at $4.50, the third at $4. If he buys three for $4 each, his consumer surplus has a value of:
a. ?$4. b. ?$9.50. c. ?$1.50. d. ?$12. e. ?$5.