Suppose That a Business Incurred Implicit Costs of $500,000 and Explicit

question 66

Multiple Choice

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

• A) profits were $100,000 and its 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 losses were $500,000.

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Definitions:

Goal

A desired result or outcome that a person or organization aims to achieve.

Objective

A goal or target that is clearly defined and can be measured or evaluated.

Expectancy Theory

A theory in psychology that explains the motivational strength as being determined by the perceived likelihood of success and the value of the outcome.

Job Design

The process of organizing tasks, duties, and responsibilities into a productive unit of work to enhance job satisfaction and performance.