If a Firm Has Explicit Costs of $100,000 and Implicit

question 15

Multiple Choice

If a firm has explicit costs of $100,000 and implicit costs of $30,000,and generates $150,000 in revenue,then its economic profit is _____

• A)$20,000.
• B)$30,000.
• C)$50,000.
• D)$100,000.
• E)$130,000.

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Definitions:

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a given price at a specific time.

Good Y

A hypothetical or symbolic representation of a product or service in economic analyses to examine effects on demand, supply, and market dynamics.

Price Of Wheat

The cost at which wheat is bought or sold in the market.

Consuming Bread

The process of utilizing bread as food, part of dietary consumption practices.