A Certain Firm Manufactures and Sells Computer Chips

question 231

Multiple Choice

A certain firm manufactures and sells computer chips.Last year it sold 2 million chips at a price of $10 per chip.For last year,the firm's

• A) accounting profit was $20 million.
• B) economic profit was $20 million.
• C) total revenue was $20 million.
• D) explicit costs was $20 million.

---

Definitions:

Self-Serving Bias

A cognitive bias that involves taking personal credit for success while blaming external factors for failures.

Bystander Effect

A social psychological phenomenon in which individuals are less likely to offer help to a victim when other people are present.

Actor-Observer Effect

The tendency to attribute one's own actions to external factors, while attributing others' actions to their personality.

Primacy Effect

The psychological phenomenon whereby the first items presented in a list are remembered more easily than those in the middle.