A firm has $300 million in revenues and explicit costs of $200 million. If its owners have invested $150 million in the company at an opportunity cost of 10 percent a year, the firm's accounting profit is: Select one: A. $150 million. B. $50 million. C. $100 million. D. $185 million.

5. True, false, or uncertain? Explain briefly but specifically. a. A cost function exhibits diseconomies of scale if the marginal cost rises as output decreases. b. Short run average cost is always at least as much as long run average cost.

Vicky quit her $ 75, 000 a year marketing executive job to open her own firm.  In Vicky's first year in business her total revenue equaled $ 180,000.  Vicky's explicit cost during the year totaled $ 80,000.  To start her business Vicky took $ 50,000 from her savings account that was paying an interest of 10% annually.  What is her economic profit for her first year in business?   A. -$26,000   B. -$ 25,000   C. $ 25,000   D. $ 24,000

Jared values his entrepreneurial skill at $10,000 annually to run a similar type if business if he had not elected to open his own restaurant. The table summarizes his operations for the past year. Total sales revenue $590,000 Employee wages $120,000 Materials $350,000 Interest on loan $5,000 Utilities $10,000 Rent $25,000 Total explicit costs $510,000 6. What is Jared's accounting profit? 7. Find Jared's total implicit costs. 8. What was Jared's economic profit last year?

8. Stage II of Law of Variable Proportions is called: (a) Diminishing returns (b) Decreasing returns (c) Falling returns (d) Negative returns