If we were told that a firm earns positive accounting profit and nothing else,what would we know is true about its economic profit?
A) It is positive because whenever accounting profit is positive,so is economic profit.
B) It cannot be determined without knowing the firm's implicit costs.
C) It is zero because all firms earn zero economic profit regardless of the industry.
D) It is equal to its accounting profit.
E) It is negative because its accounting profit is probably not high enough to earn positive economic profit.
Correct Answer:
Verified
Q22: Which of the following statements is true?
A)
Q23: A firm's economic profit is always less
Q24: What would cause a firm's production function
Q25: What happens when a firm adopts a
Q26: The three primary factors of production are
A)
Q28: Another term for factors of production is
A)
Q29: A firm's accounting profit is always greater
Q30: Belinda is the owner of a department
Q31: Karolina owns a small diner,where she works
Q32: The production function shows the relationship between
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents