Suppose That During a Given Time Period the Implicit Cost

question 286

Multiple Choice

Suppose that during a given time period the implicit cost for a business was $1,000 and that the explicit cost was $5,000. Also suppose that the firm sold 1,000 units of its products at $5 per item. We can conclude that the firm's

• A) accounting profit was $5,000, and its economic profit was $0.
• B) accounting and economic profits were both $0.
• C) accounting profit was $0, and economic profit was $1,000.
• D) accounting profit was $0, and economic profit was -$1,000.

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Definitions:

Superego

In psychoanalytic theory, the part of a person's mind that acts as a self-critical conscience, reflecting social standards learned from parents and teachers.

Guilty Feelings

Relates to emotions of remorse or regret typically associated with the belief of having done something wrong.

Demonstrative

Refers to clearly showing or proving something, often used to describe expressive behavior or actions that effectively communicate feelings or intentions.

Psychosocial Development

A concept outlined by Erik Erikson that describes how individuals evolve socially and psychologically through various stages of their life.