10. If a firm is choosing to operate that means they have a a. positive accounting profit b. Positive or 0 economic profit c. Positive total revenue d. None of the above

A small coffee house has the following costs:  building and pizza oven rentals 100,000  labor 120,000owners salary given up 85,000 value of entrepreneurial talent 30,000 raw material 100,000 Bank loan payment 15,000 interest given up by owner 5,000 revenue for the firm is expected to be 420,000 for the year.  a. Calculate the firms accounting profit and its economic profits  b. Should the firm continue business in the long term if revenue and costs continue at the same level? Why or why not?

b. Calculate Theo's accounting profit

4.Average variable cost is found by dividing..............      a. variable cost by output      b. output by variable cost      c. marginal cost by output      d. output by marginal cost   5. A profit maximizing firm will increase production      a. price is less than marginal cost      b. price equals marginal cost      c. price exceeds marginal revenue      d. price exceeds marginal cost   6. Which statement is true?     a. Accounting profits are greater than economic profits.     b. Economic profits are greater than accounting profits.     c. Accounting profits are equal to economic profits...