Microeconomics For Today (MindTap Course List)
9th Edition
ISBN: 9781305507111
Author: Irvin B. Tucker
Publisher: Cengage Learning
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Question
Chapter 7, Problem 3SQ
To determine
Check the true equality.
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Students have asked these similar questions
Which of the following are true regarding profits, revenues, and costs?
Choose one or more:
A. economic profit=revenue - implicit costs
B. total costs = implicit costs + explicit costs
C. economic profit = accounting profit - implicit costs
D. profit = total revenue - total costs
E. revenue = (price x quantity) - total costs
F. accounting profit=revenue - implicit costs
☐G. revenue = price x quantity
Accounting profits are:
A.) economic profit less explicit costs.
B.) less than economic profits.
C.) total revenue less implicit costs.
D.) more than economic profits.
Which of the following is considered when calculating
economic profit but not accounting profit?
a. implicit cost
b. explicit cost
c. total revenue
d.
marginal cost
e. All of the above are considered when calculating accounting
profit.
Chapter 7 Solutions
Microeconomics For Today (MindTap Course List)
Ch. 7.5 - Prob. 1YTECh. 7 - Prob. 1SQPCh. 7 - Prob. 2SQPCh. 7 - Prob. 3SQPCh. 7 - Prob. 4SQPCh. 7 - Prob. 5SQPCh. 7 - Prob. 6SQPCh. 7 - Prob. 7SQPCh. 7 - Prob. 8SQPCh. 7 - Prob. 9SQP
Ch. 7 - Prob. 10SQPCh. 7 - Prob. 11SQPCh. 7 - Prob. 1SQCh. 7 - Prob. 2SQCh. 7 - Prob. 3SQCh. 7 - Prob. 4SQCh. 7 - Prob. 5SQCh. 7 - Prob. 6SQCh. 7 - Prob. 7SQCh. 7 - Prob. 8SQCh. 7 - Prob. 9SQCh. 7 - Prob. 10SQCh. 7 - Prob. 11SQCh. 7 - Prob. 12SQCh. 7 - Prob. 13SQCh. 7 - Prob. 14SQCh. 7 - Prob. 15SQCh. 7 - Prob. 16SQCh. 7 - Prob. 17SQCh. 7 - Prob. 18SQCh. 7 - Prob. 19SQCh. 7 - Prob. 20SQ
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Similar questions
- 31. Modeling in manufacturing. A manufacturer of golf clubs finds that the fixed costs are $5780 per week and the cost of producing each set of clubs is $73.00. Each set of clubs can be sold for $243.00. a. Write the revenue function. b. Write the cost function. c. Write the profit function. d. Find the break-even point.arrow_forward1. How does fixed cost affect marginal cost? Why is this relationship important? 2. Is it possible for total utility to increase while marginal utility diminishes? Explain. 3. Define economies of scale and explain why they might arise. Define disecononies of scale and explain why they might arise.arrow_forward__________ refers to the expenditures incurred by a firm to obtain the factors of production that are needed in the process of production. a. Cost of production b. Opportunity cost c. Selling cost d. Direct costarrow_forward
- a. Calculate the marginal cost and average variable cost for each level of production. b. How much would the firm produce if it could sell its product for $5? For $7? For $10? c. Explain your answers. d. Assuming that its fixed cost is $3, calculate the firm's profit at each of the production levels determined in part (b).arrow_forwardA firm's economic profit is equal to a. total revenue minus accounting profit. b. accounting profit minus implicit costs. C. total revenue minus explicit costs. d. total revenue plus opportunity costs. e. total revenue plus accounting profit.arrow_forwardHarvey develops gaming apps from home instead of working as an engineer and earning $50,000 a year. He has invested $20,000 to upgrade to the hardware that he needs and estimates his expenses at $17,000 a year. Downloads generated $130,000 in revenue during the first year. What is his accounting profit? Selected Answer: b. $37,000 Answers: a. $50,000 b. $37,000 c. $130,000 d. $43,000 e. $93,000arrow_forward
- What is the rule in using the marginal analysis in making the optimal decision? a. the optimal output level is the point where the marginal benefit/marginal revenue is equal to the marginal cost. b. the optimal output level is the point where the marginal benefit/marginal revenue exceeds the marginal cost c. when the marginal costs start to exceed the marginal benefits (marginal revenue), the net benefits (profits) increase. d. as long as marginal benefit (marginal revenue) is greater than marginal cost, the net benefits (profits) decreasearrow_forwardUse the graph from class to find 1. Marginal Cost at 100; 2. Total Cost at 100; 3. Variable Cost at 100; 4. Fixed Cost at 100. Construct your own graphs similar to the ones from class. Use your diagram to show . 5. Whether or not reducing the quantity produced will always reduce the total cost. 6. Whether or not reducing the quantity produced will always reduce the average total cost. 7. Whether or not reducing the quantity produced will always reduce the marginal cost. 59 30 10- 5 MC ATC AVC 100 0arrow_forwardQUESTION 1 Match each of the following terms and descriptions Accounting Profit Economic Profit A. total revenue minus total cost B. price times quantity Profit C. total revenue minus explicit costs D. total revenue minus explicit and implicit costs Total Revenuearrow_forward
- QUESTION 4 Assume that there is an implicit cost. Which of the following must be true? a. Accounting Profit > Economic Profit b. Accounting Profit = Economic Profit c. Accounting Profit < Economic Profit d. Accounting Profit - Economic Profit = 0arrow_forwardI. A company produces at an output level where marginal cost is equal to marginal revenue and has the following revenue and cost levels: Total revenue = $1,450 Total cost = $1,500 Total variable cost = $1,300 What would you suggest? a. Shut down. b. Continue to produce because the loss is less than the total fixed cost. c. Increase production to lower the marginal cost. e. Raise the price. II. At current long-run production levels, the marginal revenue of a competitive firm is $15 and the marginal cost of the firm is $15. If the market is perfectly competitive, the firm should a. cut back on production. b. stop production all together. c. produce more. d. continue producing at current levels.arrow_forwardWhat is the optimization condition for economically efficient use of energy in productionin the short run?a. The marginal revenue product equals the price of the input.b. The total revenue from the production equals the total cost of the input.c. The average revenue from the production equals the price of the input.d. Revenue is maximizedarrow_forward
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