Suppose That a Business Incurred Implicit Costs of $500,000 and Explicit

question 148

Multiple Choice

Suppose that a business incurred implicit costs of $500,000 and explicit costs of $5 million in a specific year. If the firm sold 100,000 units of its output at $50 per unit, its accounting

• A)profits were $100,000 and its economic profits were $0.
• B)losses were $500,000 and its economic losses were $0.
• C)profits were $500,000 and its economic profits were $1,000,000.
• D)profits were $0 and its economic losses were $500,000.

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Definitions:

Regression Analysis

A statistical technique used to explore the connection between a dependent variable and one or more independent variables.

Mathematical Models

Representations of real-world systems through mathematical expressions, allowing for analysis and prediction of system behavior.

Dependent Variable

The variable in a study or experiment that is expected to change or respond due to manipulation of the independent variable(s).

Graph

A visual representation of data designed to show relationships between sets of variables using points, lines, bars, or sections.