Economic profits are:
A. Always larger than accounting profits
B. The sum of accounting profits and implicit costs
C. Equal to the difference between total revenues and implicit costs
D. Equal to the difference between accounting profits and implicit costs
D. Equal to the difference between accounting profits and implicit costs
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An external benefit is a benefit that ________
A) is enjoyed by someone other than the buyer of a good B) always equals external cost C) experiences increasing marginal returns D) is greatest at the equilibrium point
Salmon fishing in Alaska is a seasonal business; May through September is the best time to bait salmon and halibut. Toland Fisheries, a small commercial fishery, recorded its highest ever catch last year
They started this year's fishing season with the same number of workers and equipment. With the new season also starting well, Toland has increased hiring substantially. However, the fishery did not make any additional investment in trawlers and other fishing equipment. Other things remaining unchanged, what is likely to happen to the marginal product of each new worker in the short run? a. Other things remaining unchanged, what is likely to happen to the marginal product of each new worker in the short run? b. Is the outcome likely to be different in the long run? Explain your answer.