Suppose That a Business Had Implicit Costs of $500 000

question 4

Multiple Choice

Suppose that a business had implicit costs of $500 000 and had explicit costs of $5 million in a specific year.If in that year the firm sold 100 000 units of its output at $50 per unit,its accounting:

• A)profits were $100 000 and economic profits were zero
• B)losses were $500 000 and its economic losses were zero
• C)profits were $500 000 and its economic profits were $1 million
• D)profits were zero and its economic profits were $500 000
• E)profits were zero and its economic losses were $500 000

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Definitions:

Concrete Thinking

A mode of thinking that is focused on physical objects, literal understanding, and specific details, rather than abstract concepts or metaphors.

Egocentric Tendencies

Behavioral patterns where an individual prioritizes their own perspective and needs over those of others, often lacking empathy.

Religion

A set of beliefs concerning the cause, nature, and purpose of the universe, often involving rituals and devotional observances.

Middle Childhood

A developmental stage that ranges from about 6 to 12 years of age, characterized by significant growth in cognitive, emotional, and social development.