John Moved His Office from a Building He Was Renting

question 92

Multiple Choice

John moved his office from a building he was renting downtown to the carriage house he owns in back of his house.How will his profit change?

• A)Implicit costs fall.
• B)Explicit costs remain unchanged while implicit costs rise.
• C)Economic profit must fall.
• D)Explicit costs rise.
• E)Accounting profit will rise.

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Definitions:

Shared Understandings

A common grasp or agreement of knowledge, assumptions, or values among a group of people.

Organizational Domain

The area of activity or interest that a particular organization operates within, including its purpose, goals, and target audience.

Managerial Strategy

The selection and implementation of specific goals, paths, and actions by managers to fulfill the mission and objectives of an organization.

Human Relations Strategy

A management approach focusing on improving employee satisfaction, communication, and interpersonal relationships to enhance productivity.