A Firm's Total Explicit Costs Are $1,000

question 298

Multiple Choice

A firm's total explicit costs are $1,000. Its total implicit costs are $500, and it has a total revenue of $1500. This firm receives

• A) an accounting profit only.
• B) an economic profit only.
• C) both an economic profit and an accounting profit.
• D) neither an economic profit nor an accounting profit.

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Definitions:

Personal Interest

Refers to an individual's hobbies, preferences, or passions that drive their personal satisfaction and motivation.

Moral Leaders

Individuals who guide and influence others based on ethical principles and values.

Influential

Having the power to affect the actions, behavior, or opinions of others.

Sarbanes-Oxley Act

A U.S. federal law that set new or expanded requirements for all U.S. public company boards, management, and public accounting firms to increase transparency and protect investors from fraudulent financial reporting.