If the Owners of a Firm Earn Accounting Profit, It

question 198

Multiple Choice

If the owners of a firm earn accounting profit, it follows that

• A)they will earn economic profit, too.
• B)their explicit costs are greater than their implicit costs.
• C)their implicit costs are greater than their explicit costs.
• D)they will not earn economic profit.
• E)their explicit costs are greater than their total revenue.

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Definitions:

Bell-shaped

Describes a graphical depiction, often used in statistics, where the largest frequency of data forms in the middle and tapers off symmetrically towards both ends, resembling the shape of a bell.

Early Majority

A group of consumers in the diffusion of innovation model that represents approximately 34 percent of the population; members don’t like to take much risk and therefore tend to wait until bugs are worked out of a particular product or service; few new products and services can be profitable until this large group buys them.

Pioneer

An individual or entity that is among the first to explore or establish something new in a field or area.

MP3 Player Market

Refers to the commercial segment involved in the manufacturing and selling of digital audio players that play music and media stored in the MP3 format.