A Firm's Total Explicit Costs Are $1,000

question 148

Multiple Choice

A firm's total explicit costs are $1,000. Its total implicit costs are $500, and it has a total revenue of $2000. This firm receives

• A) an accounting profit only.
• B) an economic profit only.
• C) both an economic profit and an accounting profit.
• D) neither an economic profit nor an accounting profit.

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Definitions:

Bowman Capsule

A cup-like sac at the beginning of the tubular component of a nephron in the kidney that performs the first step in the filtration of blood to form urine.

Loop of Henle

A segment of the nephron in the kidney crucial for concentrating urine and conserving water.

Afferent Arteriole

The small artery that carries blood toward the capillaries in the glomerulus of the kidney.

Glomerulus

A network of capillaries located in the beginning of a nephron in the kidney where blood filtration takes place.