Wlhy would a firm be happy to earm zero economic protits? Recause zero cconomic profit means that the firm earnsO enough in total revenues to pay for all the fixed costs and some hut not all of the varlable costs.O enough in total revenues to pay for all the accounting custs but rrone of the opportunity costs.O zero accounting profits.O enough in total revenues to pay for all the laccounting costs and all of the opportunity costs.

Accounting profit = Total revenue – total cost Economic profit = accounting profit –…

Why would a tirm be happy to cam zero economic protts? Because zero oeonomic profit means that the fim earns KD enough in total revenues to pay Tor all the fixot costu and some hut not.all of the wiriable costs. O enough in total mvenues to pay for all the acCOunting custs but rone of the opportunity costs. D zero accounting profits

Why would a tirm be happy to cam zero economic protts? Because zero oeonomic profit means that the fim earns KD enough in total revenues to pay Tor all the fixot costu and some hut not.all of the wiriable costs. O enough in total mvenues to pay for all the acCOunting custs but rone of the opportunity costs. D zero accounting profits

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 40P: Return to Figure 7.7. What is the marginal gain in output from increasing the number of batters from...

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What is the difference between accounting profit and economic prof? A Economic profit subtracts both explicit and implicit costs from total revenue, while acounting profit only subtracts explicit costs. OR Accounting proft only subtracts implicit costs from totsi revenue, while economic profit only subtracts explicit costs. OC Economic proft orly subtracts implicit costs from total revenue, while accounting profit only subtracts explicit costs. OD. Accounting proft suberacts both explicit and implicit costs from total revenue, while economic proft only subtracts explicit costs
Why do average variable costs eventually rise if a company's output increases enough? O Diminishing marginal product occurs, causing average variable costs to rise. The diminishing marginal revenue triggers increased use of resources. O The reduction in average fixed costs must be offset by increasing variable costs. O The price paid for each unit of input keeps rising.
What is the difference between accounting profit and economic profi? OA Economic profit subtracts both explicit and implicit costs from total revenue, while accounting proft only subtracts explicit costs. OB. Accounting profit only subtracts implicit costs from total revenue, while economic profit only subtracts explicit costs. OC Economic profit only subtracts implicit costs from total revenue, while accounting profit only subtracts explicit costs. OD. Accounting profit suberacts both explicit and implicit costs from total revenue, while economic profR only subtracts explicit costs