When Calculating a Firm's Profit, an Economist Will Subtract Only

question 277

Multiple Choice

When calculating a firm's profit, an economist will subtract only

• A)explicit costs from total revenue because these are the only costs that can be measured explicitly.
• B)implicit costs from total revenue because these include both the costs that can be directly measured as well as the costs that can be indirectly measured.
• C)the opportunity costs from total revenue because these include both the implicit and explicit costs of the firm.
• D)the marginal cost because the cost of the next unit is the only relevant cost.

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Definitions:

Orally

Pertaining to the mouth; often used to describe the administration of medication or nutrients through the mouth.

Korotkoff Sounds

Sounds heard through a stethoscope during blood pressure measurements, associated with changes in blood flow.

Diaphragm

A dome-shaped muscular partition separating the thorax from the abdomen, playing a major role in breathing.

Stethoscope

A medical instrument used to listen to the internal sounds of the body, such as the heart and lungs.