{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Mar14 - I-Clicker Questions 1 Which of the following...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
I-Clicker Questions 1) Which of the following statements correctly describes the relationship between average cost and marginal cost? When marginal cost is less than average cost, average cost is decreasing. When marginal cost is greater than average cost, average cost is increasing. 2) Now suppose John sold the generators for $2300 each, so his total revenue was $23000. With which of the following statements do you agree? Accountant answer: $600 profit. Economist answer: not enough information to determine a profit or loss. 3) Use statements I and II to answer this question (I)Accounting profit equals total revenue minus total explicit cost. (II) Economic profit equals total revenue minus both total explicit cost and total implicit cost. Both statements are true. 4) Which of the following are examples of implicit costs? The value of the owner’s time, and the rental value of a building owned by the business. 5) How profitable is Wal-Mart, the world’s largest private company? Of each dollar that is spent at Wal-Mart, how much ends up as profit? Less than 5 cents
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}