Multiple Choice
Consider a firm that employs some resources that are owned by the firm.When accounting profit is zero,economic profit
A) must also equal zero.
B) is sure to be positive.
C) must be negative and shareholder wealth is reduced.
D) cannot be computed accurately,but the firm is breaking even nonetheless.
Correct Answer:
Verified
Correct Answer:
Verified
Q14: A price-setting firm<br>A)can lower the price of
Q15: Which of the following is a common
Q16: risk premium is<br>A)a measure calculated to reflect
Q17: In markets characterized by monopolistic competition,<br>A)a small
Q18: Economic theory is a valuable tool for
Q20: A manager who does not see his
Q21: Moral hazard is a principal-agent problem that
Q22: The economic cost to the owners of
Q23: When a firm is a price-taking firm,<br>A)the
Q24: value of a firm is<br>A)smaller the higher