Which of the following best describes a firm that is showing economic profits?
a. The firm’s revenue is adequate to cover its explicit costs.
b. The payments the firm has made are greater than its implicit costs.
c. The firm has taken in enough money to cover its total opportunity costs.
d. The per-unit cost of production for the firm is at its minimum.
c. The firm has taken in enough money to cover its total opportunity costs.
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Usury laws result in banks making less credit available to lower-income households because
A) higher-income households will pay a higher interest rate than lower-income households. B) loans made to higher-income households have no risk. C) loans to lower-income households are riskier than loans to higher-income households. D) the regulated interest rate does not adequately compensate the bank for the risk of the loan to a lower-income household.
The Fed’s purchase and sale of government securities is known as
A. margin operations. B. open-market operations. C. bank reserve operations. D. cash management operations.