Suppose that during a given time period the implicit cost for a business was $1,500 and that the explicit cost was $6,000. Also suppose that the firm sold 1,000 units of its products at $7 per item. We can conclude that the firm's
A) accounting profit was $1,000, and its economic profit was -$500.
B) accounting and economic profits were both $1000.
C) accounting profit was -$500, and economic profit was $1,000.
D) accounting profit was $1000, and economic profit was -$1,500.
A
Economics
You might also like to view...
Gasoline taxes that are typically used for highway construction and maintenance are consistent with which of the following principles of taxation?
A) the ability-to-pay principle B) the vertical-equity principle C) the horizontal-equity principle D) the benefits-received principle
Economics
What are the two policy options used to influence the economy?
What will be an ideal response?
Economics