Suppose That the Implicit Cost for a Business Was $2,000

question 333

Multiple Choice

Suppose that the implicit cost for a business was $2,000 and the explicit cost was $5,000 and that the firm sold 1,000 units of its products at $7 per item. We can conclude that the firm's

• A) accounting profit was $7,000, and its economic profit was $0.
• B) accounting and economic profits were both $0.
• C) accounting profit was $2,000, and economic profit cannot be determined.
• D) accounting profit was $2,000, and economic profit was $0.

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Definitions:

Introversion

A personality trait characterized by a focus on internal feelings rather than external sources of stimulation, often preferring solitude or quiet environments.

Collectivism

Collectivism refers to a cultural or societal framework that emphasizes the needs, goals, and interests of the group over those of the individual.

Individualism

Individualism is a social and political philosophy that emphasizes the moral worth of the individual and the importance of self-reliance and personal independence.

Reciprocal Determinism

A concept in psychology that suggests individual behavior and the environment mutually influence each other.