Joe Quits His Job as an Insurance Agent and Opens

question 19

Multiple Choice

Joe quits his job as an insurance agent and opens his own sporting goods store. If his profits as measured by his accountant are greater than zero, then

• A) his economic profit must be greater than zero.
• B) his opportunity costs must be zero.
• C) he made a good move because he is earning above normal profits.
• D) There is not enough information to determine his economic profit, if any.

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Definitions:

Masseter

A facial muscle that plays a major role in the chewing of solid foods, one of the strongest muscles in the human body.

Semitendinosus

A muscle in the back of the thigh, part of the hamstring group.

Gastrocnemius

A large muscle located on the back portion of the lower leg, forming part of the calf, that aids in walking, running, and jumping.

Biceps Femoris

A muscle of the thigh that is part of the hamstrings, involved in knee flexion and thigh extension.