5 - Economic profit equals: ( )A) TR?explicit costs. ( )B)...

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Economic profit equals: ( ) A) TR?explicit costs. ( ) B) TR?implicit costs. (X) C) TR?explicit and implicit costs. ( ) D) None of the above is true. Feedback: Economic profit equals total revenue minus all costs. A production function describes: (X) A) the maximum amount of output attainable from a given combination of factor inputs. ( ) B) the quantity of output demanded by consumers. ( ) C) the profits that result from various production outputs. ( ) D) how management and labor work in cooperation to increase production. Feedback: A production function expresses the maximum quantity of a good attainable from different combinations of factor inputs. An improvement in technology: ( ) A) shifts the short-run production function to the right. ( ) B) shifts the short-run production function to the left. (X) C) shifts the short-run production function downward. ( ) D) shifts the short-run production function upward. Feedback: A technological improvement will increase the production function by shifting it upward. Which of the following statements is true? ( ) A) The marginal physical product of labor is the addition to total output resulting from the
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addition of one more unit of labor. (X) B) Marginal physical product consists of work that is minimally or marginally acceptable. ( ) C) Marginal physical product applies to manufactured goods but not to services. ( ) D) The marginal physical product of labor continues to increase as more and more workers are added. Feedback: Marginal physical product is the additional or extra output from adding one more worker or unit of labor. You are cramming for a key economics exam and your only
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5 - Economic profit equals: ( )A) TR?explicit costs. ( )B)...

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