Which of the following describes accounting profits? Depreciation of fixed and variable assets Total revenue less explicit and implicit costs The difference between cash brought in and cash paid out Opportunity cost of resources previously owned
Which of the following describes accounting profits?
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Depreciation of fixed and variable assets
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Total revenue less explicit and implicit costs
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The difference between cash brought in and cash paid out
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Opportunity cost of resources previously owned
Which of the following are based on both explicit and implicit costs?
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Economic profits
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Constant returns to scale
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Economies of scale
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Accounting profits
The quantity demanded in the widget market is significantly greater than the quantity found at the bottom of the LRAC. Based on this information, which of the following is likely to occur?
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Only one firm will produce and sell widgets.
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Many firms will compete in the widget market.
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A
monopoly will form in the widget industry. -
Most firms will experience diseconomies of scale.
Market demand and the LRAC determine which of the following?
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The number of firms that will exist in an industry
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The number of firms with diseconomies of scale
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The level of output for firms in an industry
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The average size of firms in an industry
Jeb owns a small marketing company, which he operates from a home office. Jeb’s home office is an example of which of the following?
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Fixed cost
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Marginal cost
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Implicit cost
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Explicit cost
If a person starts their own business, one implicit cost is the loss of a steady salary from leaving a job.
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true
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false
The average cost and marginal cost are always the same.
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true
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false
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