When Calculating a Firm's Profit, an Economist Will Subtract Only

question 277

Multiple Choice

When calculating a firm's profit, an economist will subtract only

• A)explicit costs from total revenue because these are the only costs that can be measured explicitly.
• B)implicit costs from total revenue because these include both the costs that can be directly measured as well as the costs that can be indirectly measured.
• C)the opportunity costs from total revenue because these include both the implicit and explicit costs of the firm.
• D)the marginal cost because the cost of the next unit is the only relevant cost.

---

Definitions:

Attributes

Refers to qualities, features, or characteristics that are inherent in or ascribed to someone or something.

External Causes

Factors outside an individual's immediate control that influence events or outcomes.

Specific Equipment

Tools or machinery designed for particular tasks or industries, crucial for certain operations or processes.

Likes

Expressions of approval or favor towards something or someone, often used in the context of social media interactions.