Suppose That During a Given Time Period the Implicit Cost

question 286

Multiple Choice

Suppose that during a given time period the implicit cost for a business was $1,000 and that the explicit cost was $5,000. Also suppose that the firm sold 1,000 units of its products at $5 per item. We can conclude that the firm's

• A) accounting profit was $5,000, and its economic profit was $0.
• B) accounting and economic profits were both $0.
• C) accounting profit was $0, and economic profit was $1,000.
• D) accounting profit was $0, and economic profit was -$1,000.

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Definitions:

Job Involvement

The degree to which an individual identifies psychologically with their job, actively participates in it, and considers their perceived performance level important to self-worth.

Openness to Experience

A personality trait that involves the extent to which individuals are open to experiencing a variety of activities, ideas, feelings, and ways of thinking.

Personal Wellness

The holistic care and maintenance of an individual's physical, mental, and emotional health.

Job Performance

The effectiveness with which job tasks are carried out by an employee, typically evaluated against predetermined standards.