If a firm has implicit costs as well as explicit costs
A) accounting profit will be zero.
B) net income will always be greater than accounting profit.
C) net income will always be less than accounting profit.
D) economic profit will be less than accounting profit.
D
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Most economic activity in the United States is carried out by monopolies
a. True b. False Indicate whether the statement is true or false
A firm that generates pollution is illustrated in Figure 9.7. If the government imposes a pollution tax equal to P2 and the firm chooses abatement level A3:
A. the marginal cost of abating is greater than the marginal benefit of abating. B. the marginal benefit of abating is greater than the marginal cost of abating. C. the firm is choosing optimally. D. the firm is in violation of environmental protection laws.