Normal profit is a term for explicit profit the competitive rate of return the accounting profit forgone pure economic profit Q2: Which of the following items is most likely to be an implicit cost of production? the "competitive rate" salary the owner of the business pays herself for services provided property taxes on a building owned by the firm rental payments for a building utilized by the company and rented from another party the interest income foregone on the equity capital invested by owners
Normal profit is a term for explicit profit the competitive rate of return the accounting profit forgone pure economic profit Q2: Which of the following items is most likely to be an implicit cost of production? the "competitive rate" salary the owner of the business pays herself for services provided property taxes on a building owned by the firm rental payments for a building utilized by the company and rented from another party the interest income foregone on the equity capital invested by owners
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter3: Benefits, Costs, And Decisions
Section: Chapter Questions
Problem 2MC
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Q1: Normal profit is a term for
- explicit profit
- the competitive
rate of return - the accounting profit forgone
- pure economic profit
Q2: Which of the following items is most likely to be an implicit cost of production?
the "competitive rate" salary the owner of the business pays herself for services provided
property taxes on a building owned by the firm
rental payments for a building utilized by the company and rented from another party
the interest income foregone on the equity capital invested by owners
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