Which statement is true about economic profit: Select one: a. Generally large than accounting profit. b....
Which statement is true about economic profit:
Select one:
a. Generally large than accounting profit.
b. Calculated by subtracting only implicit costs of using owner-supplied resources from the firm's total revenue.
c. Negative when explicit costs exceed revenues.
d. A theoretical measure of a firm's performance and has little value in real world decision-making.
Homework Answers
Ans. d) A theoretical measure of a firm's performance and has little value in real world decision-making.
Economic profit takes into consideration the opportunity cost as well.
Economic Profit = Total Revenue - (Explicit cost + Implicit cost)
Due to the component of implicit costs as well, it is just a theoretical measure of firm's performance and doesnt hold much value in real world decision making.
Add Answer to:
Which statement is true about economic profit:
Select one:
a. Generally large than accounting profit.
b....
Positive economic profit is
Question 5 Positive economic profit is the money income of the firm's owner the excess of revenues over explicit coststhe excess of revenues over implicit costsa signal for firms in other industries to expand their outputa signal for resources to enter the industry in the long run' Question 6 Which of the following is the best measure of productivity? total profit per unit of output total output per dollar of revenue total output per hour total output total output per unit of resource input
Refer to the table below to answer two questions. The table shows the monthly economic profit...
Refer to the table below to answer two questions. The table shows the monthly economic profit of a drugstore. $ 27,000 9.09 points $ 17.000 2.500 800 700 $ 21.000 $ 6,000 ebook Total (gross) revenues per month less explicit costs: Cost of merchandise sold Wages to cashier, stock, and delivery help Rent and utilities Tæves Total explicit costs Accounting profit (revenue minus explicit costs) less implicit costs Wages of owner-manager, 300 hours $10 per hour Return on inventory investment,...
Which of the following statements about explicit costs is true? Select one: a. They are the...
Which of the following statements about explicit costs is true? Select one: a. They are the only costs that matter to business owners b. They usually exceed implicit costs. Oc. They are difficult to measure. O d. They appear on the firm's balance sheet.
T or F 17. STOCKS GENERALLY ARE MORE RISKY THAN BONDS. BONDS ARE DEBT INVESTMENTS. 18....
T or F 17. STOCKS GENERALLY ARE MORE RISKY THAN BONDS. BONDS ARE DEBT INVESTMENTS. 18. REAL INTEREST RATE < NOMINAL INTEREST RATE. 19. ACCOUNTING PROFIT= NET INCOME= REVENUES- EXPENSES – TAXES 20. ECONOMIC PROFIT= NET INCOME= REVENUES – EXPLICIT COSTS – IMPLICIT COSTS. 21. POSITIVE CASH FLOW = INFLOW < OUTFLOW. 22. FIRMS RAISE MONEY BY USE OF STOCKS, BONDS, AND DIVIDENDS. 23. OWNERS EQUITY= REVENUE – DIVIDENDS + EXPENSES – OWNERS PAID IN CAP. 24. RISKS ARE INDIRECTLY...
The firm type that involves sole decision maker power for the owner, unlimited liability for the...
The firm type that involves sole decision maker power for the owner, unlimited liability for the owner. limited ability to raise money, and ends with the death of an owner is sole proprietorship m partnership. O corporation. all of the above. 0 none of the above. Question 2 4 pts The partnership firm type has a complex decision making process, but also has unlimited liability for the owners and is dissolved with the death of one of the owners. True...
Decision Making by Individuals and Firms-End of Chapter Problem 2. You own and operate a bike...
Decision Making by Individuals and Firms-End of Chapter Problem 2. You own and operate a bike store. Each year, you receive revenue of $200,000 from your bike sales, and it costs you $100,000 to obtain the bikes. In addition, you pay $20,000 for electricity, taxes, and other expenses per year. Instead of running the bike store, you could become an accountant and receive a yearly salary of $40,000. A large clothing retail chain wants to expand and offers to rent...
1. A partial income statement from Webfoot Industries, Inc. is shown below: Revenues Revenue from sales...
1. A partial income statement from Webfoot Industries, Inc. is shown below: Revenues Revenue from sales of goods and services$29,000,000 Operating costs and expenses: Cost of products and services sold..$15,000,000 Selling expense$2,235,000 Administrative expenss$1,765,000 Total operating costs and expenses Income from operations $10,000,000 $19,000,000 Interest expense (corporate bonds &loans...$475,000 Non-recurring legal expenses. Income taxes Net i $285,000 .. $5,245,000 $3,995,000 Last year, Webfoot owned and occupied an officeQuilding in downtown Portland. The building could have been leased to other businesses...
Microeconomics multiple choice questions If implicit costs equal accounting profit, economic profit must be Select one:...
Microeconomics multiple choice questions If implicit costs equal accounting profit, economic profit must be Select one: a. negative. b. positive. c. zero. d. higher in the short run than in the long run. e. higher in the long run than in the short run. The reason the change in total cost divided by the change in output is equal to the change in total variable cost divided by the change in output, is because Select one: a. total variable cost...
please do 123456 correctly Question 1 (1 point) An example of an intermediate product is O...
please do 123456 correctly
Question 1 (1 point) An example of an intermediate product is O bricks O the output of a clothing manufacturer O unskilled labour O asparagus O a middle manager Question 2 (1 point) When a firm increases employment of a variable input in the short run, it O shifts its total product curve upward O is making a long-run decision O shifts the production possibility curve O moves along its total product curve O alters its...
Which of the following is NOT true about financial statements?
5.Which of the following is NOT true about financial statements?the balance sheet reports the financial position of a business at a particular point in timethe income statement reports the net cash received during the period as a result of operating activitiesthe statement of cash flows reports the inflows and outflows of cash for the periodthe statement of stockholders' equity includes information about net income and dividends for the period6.Which of the following best describes the purpose of the balance sheet?summarize...
Refer to the table below to answer two questions. The table shows the monthly economic profit of a drugstore. $ 27,000 9.09 points $ 17.000 2.500 800 700 $ 21.000 $ 6,000 ebook Total (gross) revenues per month less explicit costs: Cost of merchandise sold Wages to cashier, stock, and delivery help Rent and utilities Tæves Total explicit costs Accounting profit (revenue minus explicit costs) less implicit costs Wages of owner-manager, 300 hours $10 per hour Return on inventory investment,...
Which of the following statements about explicit costs is true? Select one: a. They are the only costs that matter to business owners b. They usually exceed implicit costs. Oc. They are difficult to measure. O d. They appear on the firm's balance sheet.
The firm type that involves sole decision maker power for the owner, unlimited liability for the owner. limited ability to raise money, and ends with the death of an owner is sole proprietorship m partnership. O corporation. all of the above. 0 none of the above. Question 2 4 pts The partnership firm type has a complex decision making process, but also has unlimited liability for the owners and is dissolved with the death of one of the owners. True...
Decision Making by Individuals and Firms-End of Chapter Problem 2. You own and operate a bike store. Each year, you receive revenue of $200,000 from your bike sales, and it costs you $100,000 to obtain the bikes. In addition, you pay $20,000 for electricity, taxes, and other expenses per year. Instead of running the bike store, you could become an accountant and receive a yearly salary of $40,000. A large clothing retail chain wants to expand and offers to rent...
1. A partial income statement from Webfoot Industries, Inc. is shown below: Revenues Revenue from sales of goods and services$29,000,000 Operating costs and expenses: Cost of products and services sold..$15,000,000 Selling expense$2,235,000 Administrative expenss$1,765,000 Total operating costs and expenses Income from operations $10,000,000 $19,000,000 Interest expense (corporate bonds &loans...$475,000 Non-recurring legal expenses. Income taxes Net i $285,000 .. $5,245,000 $3,995,000 Last year, Webfoot owned and occupied an officeQuilding in downtown Portland. The building could have been leased to other businesses...
please do 123456 correctly
Question 1 (1 point) An example of an intermediate product is O bricks O the output of a clothing manufacturer O unskilled labour O asparagus O a middle manager Question 2 (1 point) When a firm increases employment of a variable input in the short run, it O shifts its total product curve upward O is making a long-run decision O shifts the production possibility curve O moves along its total product curve O alters its...
Most questions answered within 3 hours.
-
Using MARS simulator, write MIPS programs according to
the following scenarios: Receive a positive integer number...
asked 1 hour ago -
An object in front of a concave mirror has a real image that is
11.5 cm...
asked 1 hour ago -
Consider the reaction, C3 H8 + O2 --> CO2 + H2O. How many
moles of O2...
asked 3 hours ago -
You and your opponent both roll a fair die. If you both roll the
same number,...
asked 3 hours ago -
In a study of the accuracy of fast food drive-through orders,
Restaurant A had 257 accurate...
asked 3 hours ago -
Identify and describe in detail the four categories of
institutions that could be included in a...
asked 3 hours ago -
In python
class Customer:
def __init__(self, customer_id, last_name, first_name, phone_number, address):
self._customer_id = int(customer_id)
self._last_name =...
asked 3 hours ago -
What is an example of a limitation in implementing a new
ERP system and how it...
asked 3 hours ago -
In a section of 9.7cm of an artery with a radius of 2.6mm there
is a...
asked 3 hours ago -
the two carboxylic acid groups of aspartic acid have different
acidities with pKa values of 2.1...
asked 3 hours ago -
Would CuCO3 aqueous salt combined with calcium chloride
form a solid precipitate? If so, what would...
asked 3 hours ago -
How do ECM Solutions assist in embedding a culture of continuous
improvement in an organization? (Project...
asked 3 hours ago