When Calculating a Firm's Profit,an Economist Will Subtract Only

question 86

Multiple Choice

When calculating a firm's profit,an economist will subtract only

• A) explicit costs from total revenue since these are the only costs that can be measured explicitly.
• B) implicit costs from total revenue since these include both the costs that can be directly measured as well as the costs that can be indirectly measured.
• C) the opportunity costs from total revenue since these include both the implicit and explicit costs of the firm.
• D) the marginal cost since the cost of the next unit is the only relevant cost.

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Definitions:

Malthusian Trap

A situation where population growth outpaces agricultural production, leading to famine, disease, and war.

Poor

Refers to the state of having insufficient financial resources or wealth.

Food

Nutritive material consumed by living organisms to sustain life and growth.

Malthusian Trap

A theory suggesting that population growth tends to outpace agricultural production, leading to periodic starvation, poverty, and population decline.