"Economic profits are less than or at most equal to accounting profits." Do you agree or disagree? Explain

What will be an ideal response?

Agree. Economic profits are accounting profits less implicit costs, or the opportunity costs of inputs. Since the opportunity costs of capital and labor inputs are never negative, economic profits are less than or at most equal to accounting profits.

Economics

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Debbie makes porcelain plates in her home and sells them to the Opus gallery. She spent $400 last month on supplies and made 50 plates. She sold the plates to the gallery at $25 per plate. The gallery sells all the plates for $40 each

For all of the 50 plates, what is Debbie's total value added? For all the 50 plates, what is the gallery's total value added?

Economics

Deadweight loss measures the loss

a. in a market to buyers and sellers that is not offset by an increase in government revenue. b. in revenue to the government when buyers choose to buy less of the product because of the tax. c. of equality in a market due to government intervention. d. of total revenue to business firms due to the price wedge caused by the tax.

Economics