Use the Network Diagram and Activity Lengths in the Nodes

question 43

Multiple Choice

Use the network diagram and activity lengths in the nodes to determine the slack time for activity D.

• A)3
• B)2
• C)1

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Definitions:

Economic Profits

Profits that exceed the costs of all inputs, including both explicit costs (like wages and materials) and implicit costs (like the opportunity cost of capital).

Industry Equilibrium

A state where supply and demand in an industry are balanced, leading to stable prices and quantities.

Economic Profits

The difference between total revenue and total costs, including both explicit and implicit costs, indicating the financial gain in excess of the opportunity costs.

Long-run Equilibrium

A state in which all firms in a market are earning zero economic profits, ensuring that no firm has an incentive to enter or exit the market.