The economy's current rate of interest is 10 percent and a firm has $10,000 of owner-invested capital. Its total revenue is $5000 and the firm's explicit costs are $3500. From this we know that this firm's
A) accounting profit is $500.
B) economic profit is $1,500.
C) accounting profit is $11,500.
D) economic profit is $500.
Correct Answer:
Verified
Q141: A basic tenet of the theory of
Q143: Economic profit is always
A) greater than accounting
Q145: In comparing accounting profit with economic profit,
Q151: Suppose your donut shop earns $24,000 in
Q152: If your business earns $10,000 in revenues,
Q154: A business organization that employs resources to
Q155: Economic profits are
A) the same as accounting
Q156: The goal of the firm is
A) low
Q158: Economists assume that the goal of a
Q160: To find economic profit from accounting profit,
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