In Figure 5

question 57

Multiple Choice

In Figure 5.8, if the supply curve moves from S1 to S2

• A)The firm will make a smaller economic profit than they used to
• B)The firm will go from making an economic profit to a normal profit
• C)The firm will go from making an economic profit to a loss
• D)The firm will go from making normal profits to a loss

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Definitions:

Dormitories

Residential facilities provided by educational institutions for students to live in.

Implicit Costs

The opportunity costs that arise from using resources that could have been employed in an alternative use but were instead utilized in the current operation without direct payment.

Explicit Costs

Direct, out-of-pocket payments for goods and services used in the production of a product or provision of a service.

Accounting Profit

The difference between total monetary revenue and total monetary costs, excluding the consideration of opportunity costs.