If an economist were to consult for a major Fortune 500 company, and he reached the conclusion the firm was making zero economic profit,
A) the firm's accounting profit would be greater than zero.
B) the firm should go out of business immediately.
C) the firm's accounting profits would be lower.
D) the economist's numbers were probably wrong because economic profit can never be zero.
A
You might also like to view...
Why isn't the current yield a good indicator of holding a bond?
A) It doesn't account for the yield to maturity. B) It doesn't account for capital gains or losses. C) It doesn't account for the coupon. D) It assumes that the current price equals its par value.
Which of the following is not correct?
a. The consumer price index gives economists a way of turning dollar figures into meaningful measures of purchasing power. b. The consumer price index is used to monitor changes in the cost of living over time. c. The consumer price index is used by economists to measure the inflation rate. d. The consumer price index is used to measure the quantity of goods and services that the economy is producing.