Normal profit is a(n) ________ cost because ________
A) implicit; it represents the cost of not running another firm
B) explicit; a firm must pay income taxes on its profit
C) implicit; it represents the cost of economic depreciation
D) accounting; wages are considered an explicit cost
E) depreciation; the equipment the firm owns wears out over time
A
Economics
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What causes new firms to enter into a monopolistically competitive market structure?
What will be an ideal response?
Economics
Refer to the graph shown depicting a perfectly competitive firm. If average variable cost is $3 at quantity 450, points A through E represent the:
A. demand for the firm's product. B. firm's supply curve. C. firm's total revenue curve. D. firm's total cost curve.
Economics