Why would a firm be happy to earn zero economic profits? Because zero economic profit means that the firm earns Select one. O. enough in total revenues to pay for all the fixed cost and some but not all of the variable costs. O. enough in total revenues to pay for all the accounting costs but none of the opportunity costs. O. zero accounting profit. O. enough in total revenues to pay for all the accounting costs and all of the opportunity costs

Why would a firm be happy to earn zero economic profits? Because zero economic profit means that the firm earns Select one. O. enough in total revenues to pay for all the fixed cost and some but not all of the variable costs. O. enough in total revenues to pay for all the accounting costs but none of the opportunity costs. O. zero accounting profit. O. enough in total revenues to pay for all the accounting costs and all of the opportunity costs

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 37CTQ: How would an improvement in technology, like the high-efficiency gas turbines or Pirelli tire plant,...

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How would an improvement in technology, like the high-efficiency gas turbines or Pirelli tire plant, affect me lung-nm average cost curve of a firm? Can you draw the old curve and the new one on the same axes? How might such an improvement affect other firms in the industry?
Based on your answers to the WipeOut Ski Company in Exercise 7.3, now imagine a situation where the firm produces a quantity of 5 units that it sells for a price of 25 each. What will be the companys profits or losses? How can you tell at a glance whether the company is making or losing money at this price by looking at average cost? At the given quantity and price, is the marginal unit produced adding to profits?
What is the difference between accounting profit and economic profi? OA Economic profit subtracts both explicit and implicit costs from total revenue, while accounting proft only subtracts explicit costs. OB. Accounting profit only subtracts implicit costs from total revenue, while economic profit only subtracts explicit costs. OC Economic profit only subtracts implicit costs from total revenue, while accounting profit only subtracts explicit costs. OD. Accounting profit suberacts both explicit and implicit costs from total revenue, while economic profR only subtracts explicit costs
Which of the following does not change with the level of output? O Total fixed cost O Margiņal cost O Total variable cost O Average fixed cost ఆత
What is the difference between accounting profit and economic prof? A Economic profit subtracts both explicit and implicit costs from total revenue, while acounting profit only subtracts explicit costs. OR Accounting proft only subtracts implicit costs from totsi revenue, while economic profit only subtracts explicit costs. OC Economic proft orly subtracts implicit costs from total revenue, while accounting profit only subtracts explicit costs. OD. Accounting proft suberacts both explicit and implicit costs from total revenue, while economic proft only subtracts explicit costs
Bob produces candles. The average total cost reaches its minimum at a quantity O A. the same as the quantity at which the average variable cost reaches its minimum. O B. lower than the quantity at which the average variable cost reaches its minimum. O C. the same as the quantity at which the marginal cost is at a maximum. O D. the same as the quantity at which the marginal cost is at a minimum. O E. greater than the quantity at which the average variable cost reaches its minimum.
You learn that a firm's average total costs (ATC) and average variable costs (AVC) are exactly equal. What does that mean? O Marginal cost is zero O ATC and AVC must be equal to zero O Average fixed costs (AFC) are zero O Economic profit is positive O Economic profit is negative
Which of the following does not change with the level of output? O Total variable cost O Total fixed cost O Marginal cost O Average fixed cost
Which of the following equations calculates the profits of a firm? O A. Total revenues - Fixed costs OB. Total costs - Fixed costs OC. Total revenues - Total costs O D. Total revenues + Total costs
Which of the following does not change with the level of output? O Marginal cost O Total fixed cost O Total variable cost Average fixed cost
estion 4 of 30 Each graph illustrates three short run cost curves for firms, where ATC is average total cost (aka average cost), MC is marginal cost, and AVC is average variable cost. Which graph correctly represents the relationship between all three cost curves? О Cost MC Cost ATC MC ATC AVC AVC Output Output Cost MC Cost MC АТС AVC AVC АТС Output Output 8:14 PM 回节回 46°F 12/15/2021 近

QUESTION 8 Other things equal, if the fixed costs of a firm were to increase by $100.000 per year, which of the following would happen? B.Average fixed costs and average variable costs would O D. Average fixed costs would rise, but marginal O C. Average fixed costs and A. Marginal costs and average variable costs would both rise. average total costs would rise rise costs would fall