Firm Production

The primary goal of a business firm is to A. make a quality product. B. promote fairness. C. promote workforce job satisfaction. D. maximize profit. E. increase its production.

maximize profit

Which of the following is​ true? A. Economic profit ignores implicit costs. B. Profit as calculated by accountants and economic profit are not necessarily equal. C. Profit as calculated by accountants is always smaller than economic profit. D. The Internal Revenue Service taxes the​ firm's normal profit but not its economic profit. E. The Internal Revenue Service taxes the​ firm's economic profit but not its normal profit.

Profit as calculated by accountants and economic profit are not necessarily equal

The cost that a firm pays in money to hire a resource is referred to as​ ________ cost. A. a maximized B. a total C. an implicit D. a minimized E. an explicit

an explicit

Darryl runs a ranch in​ Jackson, Wyoming. The interest on the debt he incurred to buy his ranch totals​ $3,000 per year. For​ Darryl, the interest is A. an explicit cost. B. his normal cost. C. his normal profit. D. an implicit cost. E. part of his economic profit.

an explicit cost

A cost incurred in the production of a good or service and for which the firm does not need to make a direct monetary​ payment, is referred to as​ ________ cost. A. an implicit B. an invisible C. a minimized D. a maximized E. an explicit

an implicit

The difference between a​ firm's total revenue and its total cost is its​ ________ profit. A. excess B. accounting C. economic D. normal E. explicit

economic

A​ firm's total revenue minus its total opportunity cost is called its A. entrepreneur's profit. B. accounting profit. C. normal profit. D. abnormal profit. E. economic profit.

economic profit.

When an economist uses the term​ "cost" referring to a​ firm, the economist refers to the A. explicit cost of producing a good or service but not the implicit cost of producing a good or service. B. opportunity cost of producing a good or​ service, which includes both implicit and explicit cost. C. implicit cost of producing a good or service but not the explicit cost of producing a good or service.. D. cost that can be actually verified and measured. E. price of the good to the consumer.

opportunity cost of producing a good or​ service, which includes both implicit and explicit cost.

If a business owner decided to expand her business but rather than borrowing money from a bank used her own​ funds, then A. the amount of her funds she used is part of her normal profit. B. the amount of her funds she used is an explicit cost. C. she would be unable to earn a normal profit. D. she would forego the opportunity to earn interest on the money. E. there is no cost associated with the expansion.

she would forego the opportunity to earn interest on the money