If a Firm Earns Normal Profit, Then It Has Generated

question 184

Multiple Choice

If a firm earns normal profit, then it has generated revenues

• A)equal to the sum of implicit and explicit costs.
• B)greater than total opportunity costs.
• C)sufficient to cover explicit costs, but not implicit costs.
• D)sufficient to cover implicit costs, but not explicit costs.

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Definitions:

Production Possibility Frontier

A curve depicting all maximum output possibilities for two goods, given a set of inputs and production technology.

International Trade

The swapping of commodities and services among different nations.

Unskilled Workers

Individuals who lack specialized skills, training, or qualifications for particular jobs or industries.

Imports

Goods and services purchased from other countries.