What does it mean for a firm to be suffering an economic loss? Does this imply that the firm is earning negative profit in the accounting sense? Explain
What will be an ideal response?
When a firm is suffering an economic loss, it is earning a below-normal rate of return. However, this does not imply that the firm is earning negative profit in an accounting sense. It is possible that the opportunity costs of owner-supplied factors of production are greater than the firm's accounting profit.
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A higher exchange rate for the U.S. dollar means that
A) the U.S. dollar trades for less foreign currency. B ) the U.S. dollar trades for more foreign currency. C) foreign currency has risen in value relative to the dollar D) the U.S. dollar has fallen in value relative to the foreign currency.
If average product is decreasing, then marginal product must be negative
Indicate whether the statement is true or false