Suppose that the implicit cost for a business was $2,000 and the explicit cost was $5,000 and that the firm sold 1,000 units of its products at $7 per item. We can conclude that the firm's
A) accounting profit was $7,000, and its economic profit was $0.
B) accounting and economic profits were both $0.
C) accounting profit was $2,000, and economic profit cannot be determined.
D) accounting profit was $2,000, and economic profit was $0.
Answer: D
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When Dale buys a new computer for $1,000 using a credit card,
A) his bank account decreases by $1,000. B) he is taking out a loan for $1,000. C) the credit card is acting as money. D) the money supply decreases by $1,000. E) the credit card is performing the function of an unit of account.
Suppose there are 1000 identical wheat farmers. For each, TC = 10 + q2. Market demand is Q = 600,000 – 100p. Derive the short-run equilibrium Q, q, and p. Does the typical firm earn a short-run profit?
What will be an ideal response?