A Firm Has Explicit Costs of $110,000 and Total Revenue

question 242

Multiple Choice

A firm has explicit costs of $110,000 and total revenue of $120,000.Which of the following is true about the firm?

• A) The firm might be making an economic profit but we need more information about implicit costs to know for sure.
• B) The firm is definitely making an economic profit because it must be minimizing its opportunity cost.
• C) The firm is incurring an economic loss if implicit costs are $10,000.
• D) The firm is making a normal profit if implicit costs are $0.
• E) The firm may be making an economic profit but only if implicit costs are negative.

---

Definitions:

Symbolic Interactionist

A sociological perspective emphasizing how individuals interpret and give meaning to social interactions, objects, and events in their daily lives, shaping their social reality.

George Herbert Mead

An American philosopher, sociologist, and psychologist associated with the Chicago School of sociology, known for his theories on the social self and the development of self through interaction.

Hegemonic Manipulation

Hegemonic manipulation refers to the practices by dominant groups to maintain control and leadership over others through cultural and ideological means, often subverting dissent.

Resocialization

The process by which individuals learn new norms, values, attitudes, and behaviors, replacing those from a previous context, often occurring in total institutions.