Suppose That a Firm Produces 200,000 Units a Year and Sells

question 375

Multiple Choice

Suppose that a firm produces 200,000 units a year and sells them all for $10 each. The explicit costs of production are $1,500,000 and the implicit costs of production are $300,000. The firm earns an accounting profit of

• A)$500,000 and an economic profit of $200,000.
• B)$2,000,000 and an economic profit of $200,000.
• C)$200,000 and an economic profit of $2,000,000.
• D)$200,000 and an economic profit of $500,000.

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Definitions:

Takeoff Stage

Refers to the phase in a country's economic development where growth becomes rapid and self-sustaining, often marked by increases in productivity and investment.

Professional Management

The managerial process conducted by an individual or a team who are trained and skilled in planning, execution, and supervision of business operations.

Delegation

The process of assigning responsibility and authority to someone else to carry out specific activities, while the person delegating retains overall responsibility for the outcome.

Management Techniques

Methods and strategies used by leaders and managers to increase efficiency, effectiveness, and to achieve organizational goals.