If a Firm Has Revenues of $125, Explicit Costs of $25

question 133

Multiple Choice

If a firm has revenues of $125, explicit costs of $25, and implicit costs of $50, then its accounting profit is:

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

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Definitions:

Reasonable Period

An amount of time which is fairly appropriate under the circumstances, often subject to interpretation based on the specific context.

Exact Period

A specific timeframe during which certain actions are to take place or conditions must be met.

Offer Open

A proposal made in business or negotiations that remains valid for acceptance until a specified date or until withdrawn by the proposer.

Sailboat Sale

The transaction process involved in transferring ownership of a sailboat from one party to another.