Economic profit
A. can be calculated by subtracting implicit costs of using owner-supplied resources from the firm's total revenue.
B. is negative when total costs exceed total revenues.
C. is a theoretical measure of a firm's performance and has little value in real world decision making.
D. is generally larger than accounting profit.
Answer: B
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A) Domestic firms must be protected until they gain a comparative advantage. B) Any firm necessary in wartime must be protected. C) Foreign producers selling below cost to drive domestic firms bankrupt must be stopped. D) Domestic jobs must be protected from competition from low-paid foreign workers. E) Foreigners selling products in the economy limit the nation's diversity and stability.
In Problem 15, under what conditions would GM stop producing the Chevy Volt and exit the market for electric cars. Explain your answer
What will be an ideal response?