If a Firm Has Total Revenue of $300 Million, Explicit

question 64

Multiple Choice

If a firm has total revenue of $300 million, explicit costs of $200 million and implicit costs of $30 million, its accounting profit is:

• A) $200 million.
• B) $100 million.
• C) $70 million.
• D) -$10 million.

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Definitions:

Isolated Impact

Effects or outcomes that occur in a limited area or scope, without significant broader or systemic implications.

High-Performing

Describes individuals, teams, or organizations that consistently achieve superior results and exceed expected performance standards.

Total Dissolution

The complete disbanding and cessation of operations of an organization or partnership, where assets are liquidated and liabilities settled.

Merger

The voluntary fusion of two or more entities into one, usually to gain a competitive edge or achieve higher efficiency.