A company's revenue is $1,600,000. Its explicit cost is $1,000,000 and its implicit cost is $700,000. Which of the following statements about this company is accurate? This company is losing money. This company could make more money doing something else. ) This company has high fixed costs. This company has economies of scale.

A company's revenue is $1,600,000. Its explicit cost is $1,000,000 and its implicit cost is $700,000. Which of the following statements about this company is accurate? This company is losing money. This company could make more money doing something else. ) This company has high fixed costs. This company has economies of scale.

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter7: Economies Of Scale And Scope

Section: Chapter Questions

Problem 5MC

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