Suppose That a Local Hardware Store Has Explicit Costs of $2

question 78

Multiple Choice

Suppose that a local hardware store has explicit costs of $2 million per year and implicit costs of $44 000 per year.If the store earned an economic profit of $50 000 last year,this means that the store's accounting profit equalled:

• A) $94 000.
• B) $6 000.
• C) $2.05 million.
• D) $2.044 million.

---

Definitions:

General-to-Specific

A method of organization or argumentation that begins with broad observations and narrows down to more detailed points or specifics.

Criteria

Standards or benchmarks against which decisions are made or outcomes are evaluated.

Unethical

Actions or behavior that do not conform to accepted standards of moral or professional conduct.

Cause-and-Effect

An analysis that explores the reasons for a particular event or situation and the consequences that result from it.