econ

A firm can be identified as profitable if the

Difference between its total revenue and total costs is positive.

In defining costs, economists recognize:

Explicit and implicit costs while accountants recognize only explicit costs.

Which of the following would cause a firm's production function to shift upward?

Increased investment in capital.

The decision to build, buy, or lease a plant is known as the

Investment decision.

The factors of production include:

Land, labor, capital, and entrepreneurship

The short-run supply decision focuses on:

Marginal cost versus price.

The most desirable rate of output is the one that:

Maximizes total profit

Suppose a firm incurred explicit costs of $900 and implicit costs of $200 during a day. If that day the firm sold 8 units at $300 per unit its accounting profits are:

$1,500 and its economic profits are $1,300

As more labor is hired in the short run, diminishing returns are observed because:

The new workers have less capital and land to work with