Assignment 7

Assignment 7 - ES 102-03 Principles of Economics Micro...

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ES 102-03: Principles of Economics – Micro Stetson University Assignment 7 Spring 2009 1. Which of the following definitions is correct ? A. Accounting profit + economic profit = normal profit. B. Economic profit accounting profit = explicit costs. C. Economic profit = accounting profit implicit costs. D. Economic profit implicit costs = accounting profits. 2. Suppose that a business incurred implicit costs of $500,000 and explicit costs of $5 million in a specific year. If the firm sold 100,000 units of its output at $50 per unit, its accounting: A. profits were $100,000 and its economic profits were zero. B. losses were $500,000 and its economic losses were zero. C. profits were $500,000 and its economic profits were $1 million. D. profits were zero and its economic losses were $500,000. Answer the next question(s) on the basis of the following output data for a firm. Assume that the amounts of all non-labor resources are fixed. 3. Refer to the above data. Diminishing marginal returns become evident with the addition of the:
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Assignment 7 - ES 102-03 Principles of Economics Micro...

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