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.

Understand the mean and standard deviation of standard and exponential distributions.

Differentiate between different types of probability distributions.

Calculate cutoff values for specific percentiles in a normal distribution.

Understand and apply concepts of the exponential distribution in context.

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Definitions:

Compounded Semi-annually

Interest calculation method where the interest is added to the principal twice a year, leading to a growth in the amount at a faster rate than simple interest.

Compounded Quarterly

This term refers to the calculation and addition of interest to the principal sum of a deposit or loan on a quarterly basis.

RRSP

A Canadian retirement savings plan that defers taxes on contributions and investment earnings until withdrawal.

Compounded Quarterly

An approach to interest calculation that involves adding the interest to the principal sum every three months.