Financial value of the firm increases when the firm generates economic returns, in the context of its desired social engagement, in excess of its __________. Group of answer choices a. Fixed costs b. Cost of capital c. Variable costs d. Opportunity costs

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

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2. Calculate accounting profit and economic profit for each of the following firms (amounts are in millions of dollars) Sales Wages and salaries cost of equity capital interest on debt cost of materials General Motors $50,091 29052 12100 7585 6500 Barclays Bank 5730 3932 750 275 556 Microsoft 2750 400 35 5 1650