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:

Sleep Terrors

Episodes of screaming, intense fear, and flailing while still asleep, often paired with difficulty fully waking up, occurring predominantly in children.

Parasomnias

A group of sleep disturbances characterized by unusual actions, feelings, sensations, or dreams that appear during the process of falling asleep, throughout the sleep period, in transitions between stages of sleep, or upon waking.

Piercing Scream

A very loud, high-pitched sound made by a person, often as a response to extreme fear or distress.

Parasomnia

A category of sleep disorders that involve abnormal movements, behaviors, emotions, perceptions, or dreams occurring while falling asleep, sleeping, between sleep stages, or during arousal from sleep.