What is accounting profit?
A) gross revenue minus explicit costs
B) gross revenue minus implicit costs
C) gross revenue minus explicit and implicit costs
D) the same as economic profit
Answer: A
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In the long run a firm will choose a plant size that has the:
A. Minimum of average fixed costs B. Capacity to produce the largest quantity of the product C. Minimum average total cost of producing the target level of output D. Maximum level of resource use per unit of the total product of output
Exhibit 10-12 Income distribution for three countries QuintileCountry I (%) Country II (%) Country III (%) Poorest 6 8 4 Second12 12 8 Third15 15 10 Fourth27 30 30 Richest40 35 48 Exhibit 10-12 shows the percentage of income received by each population quintile. In Country I we can conclude that the:
A. richest 20 percent of the population received 25 percent of the economy's income. B. richest 20 percent of the population received 40 percent of the economy's income. C. richest 20 percent of the population received 80 percent of the economy's income. D. least-wealthy 20 percent of the population received 40 percent of the economy's income.