Suppose a firm sells its product at a price lower than the opportunity cost of the inputs used to produce it. Which is true?
A) the firm will earn accounting and economic profits.
B) the firm will face accounting and economic losses.
C) the firm will face an accounting loss, but earn economic profits.
D) the firm may earn accounting profits, but will face economic losses.
Correct Answer:
Verified
Q1: Mannheim defines _as the sum of those
Q2: Implicit costs are:
A)equal to total fixed costs.
B)comprised
Q4: Suppose that a firm produces 200,000 units
Q5: The short run is a time period
Q6: The marginal product of labor curve shows
Q7: If you know that with 8 units
Q8: The reason the marginal cost curve eventually
Q9: Which of the following statements best describes
Q10: Which of the following statements describes the
Q11: Which of the following statements describes increasing
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