If General Motors is earning only a normal profit,
a. it is making economic profit
b. it is breaking even
c. it is suffering an economic loss
d. it is covering only explicit costs
e. it is covering only implicit costs
B
You might also like to view...
Assume there is a toll bridge that is built by a private firm. It's been determined by cost accountants that the marginal cost that each automobile imposes is close to zero
If the bridge cost $1 million to build and 250,000 automobiles cross it each day what is the price that would be necessary for the firm to charge in order to achieve the key efficiency criteria of perfect competition? How might this be a problem for this private bridge company?
An increase in the cost of lumbering activities will:
a. increase the quantity of wood supplied to the furniture market. b. decrease the quantity of wood supplied to the furniture market. c. decrease the supply of wood to the furniture market. d. increase the supply of wood to the furniture market.