If a Firm Has an Accounting Profit of $2,350,000 and Implicit

question 35

Multiple Choice

If a firm has an accounting profit of $2,350,000 and implicit costs totaling $150,000,then its economic profit equals

• A)$2,350,000
• B)$2,500,000
• C)$2,200,000
• D)$150,000
• E)$2,000,000

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Definitions:

Progressive Change

Gradual transformation or development over time in a specific, usually forward or beneficial, direction.

Phrenology

A now-discredited theory that suggested the bumps on the skull could predict mental traits or character.

Localization of Function

The concept in neurology and psychology that specific parts of the brain are responsible for specific functions or behaviors.

Doctrine of Specific Nerve Energies

A principle in neuroscience that suggests each sensory nerve pathway produces its own specific type of sensation, regardless of how it is stimulated.