If a Firm Has an Accounting Profit of $2,350,000 and Implicit

question 35

Multiple Choice

If a firm has an accounting profit of $2,350,000 and implicit costs totaling $150,000,then its economic profit equals

• A)$2,350,000
• B)$2,500,000
• C)$2,200,000
• D)$150,000
• E)$2,000,000

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Definitions:

Parentheses

Parentheses are symbols used in mathematics to group terms or to indicate the order of operations.

Annual Sales

The total value of all sales transactions completed by a business over the course of a year.

Sporting Goods

Items and equipment used for athletic or recreational activities.

Combining Like Terms

The process of adding or subtracting algebraic terms that have the same variable components.