A firm has $200 million in total revenue and explicit costs of $190 million. If its owners have invested $100 million in the company at an opportunity cost of 10 percent interest per year, the firm's accounting profit is:

Suppose the government establishes a price support for soybeans. The new government program will tend to

A) decrease the output of soybeans. B) increase the quantity demanded of soybeans. C) decrease the demand for soybeans. D) increase a farmer's opportunity cost of producing other commodities (such as corn), which could be grown on the same land used to grow soybeans. E) do none of the above.

Risk-sharing forms of compensation are beneficial if employee are

A) risk preferring. B) risk neutral. C) risk averse. D) prefer more to less.