Suppose That During a Given Time Period the Implicit Cost

question 286

Multiple Choice

Suppose that during a given time period the implicit cost for a business was $1,000 and that the explicit cost was $5,000. Also suppose that the firm sold 1,000 units of its products at $5 per item. We can conclude that the firm's

• A) accounting profit was $5,000, and its economic profit was $0.
• B) accounting and economic profits were both $0.
• C) accounting profit was $0, and economic profit was $1,000.
• D) accounting profit was $0, and economic profit was -$1,000.

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Definitions:

Agricultural Economies

Economic systems primarily based on the production, distribution, and consumption of agricultural goods and services, often characterized by a reliance on farming and livestock.

Foraging

The act of searching and obtaining food resources in the wild, practiced by humans and animals alike.

Climate Changes

refers to significant and lasting changes in the statistical distribution of weather patterns over periods that range from decades to millions of years.

Herd Animals

Animals that naturally live, travel, and graze in groups, displaying collective behavior for protection and efficiency.