If a Firm Has Revenues of $100, Explicit Costs of $50

question 105

Multiple Choice

If a firm has revenues of $100, explicit costs of $50, and implicit costs of $50, its economic profit is:

• A) $0.
• B) $50.
• C) $100.
• D) $500.

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Definitions:

Emissions Tax

A tax imposed on the emission of pollutants, aimed at reducing environmental harm by incentivizing companies to lower their pollution levels.

Marginal Benefit

The further enjoyment or utility obtained when one more unit of a product or service is consumed.

Pollution

The existence or entry of a harmful or toxic material or object into the environment.

Polluters

Individuals or entities that introduce pollutants or contaminants into the environment, causing pollution.