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