How is accounting profit calculated?
What will be an ideal response?
Accounting profit equals total revenues minus explicit costs.
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The figure above shows that as a result of the tariff, consumer surplus in the United States
A) decreases by $105 million per year. B) increases by $55 million per year. C) decreases by $30 million per year. D) decreases by $20 million per year. E) remains unchanged.
Assume that the government of a nation prohibits producers from extracting crude oil from some domestic oil fields. Which of the following will be witnessed in the market for crude oil?
a. The domestic and world price of crude oil would remain unaffected. b. The domestic price of crude oil would increase. c. Oil import from the world market would decline. d. The world price of crude oil would increase.
What is an arrangement between countries to allow free trade between members called?
a. economic union b. common market c. trade forum d. free trade agreement
Use the Application about the price of vanity license plates in Virginia to answer the following question(s).Recall the Application. Which of the following is a reason for the state of Virginia to increase its revenue while the price for vanity plates increases?
A. The demand for vanity plates in Virginia is inelastic. B. The demand for vanity plates in Virginia is elastic. C. The demand for vanity plates in Virginia is equal to 1. D. There is insufficient information to draw a conclusion.