If the Total Costs of Producing 1,500 Units of Output

question 76

Multiple Choice

If the total costs of producing 1,500 units of output is $15,000 and this output sold to consumers for a total of $16,500, then the firm would earn economic profits of

• A)$31,500.
• B)$16,500.
• C)$1,500.
• D)$15,000.

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Definitions:

Rate Of Return

The gain or loss on an investment over a specified period, expressed as a percentage of the investment's cost.

Discontinued Operations

Components of a business that have been disposed of or are being held for sale, separate from continuing operations.

Transitory Component

Temporary fluctuations in financial or economic data that do not reflect long-term trends and are expected to revert over time.

Permanent Earnings Component

The part of a company's net income expected to continue in the future, excluding any extraordinary or one-time events.