Economic profits are a always larger than accounting

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7. Economic profits are: A. Always larger than accounting profits B. The sum of accounting profits and implicit costs C. Equal to the difference between total revenues and implicit costs D. Equal to the difference between accounting profits and implicit costs
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8. Assume that the only variable resource used to produce output is labor. Refer to the above table. When the firm hires four units of labor, the average product of labor is: 9. Assume that the only variable resource used to produce output is labor. Refer to the above table. Diminishing marginal returns set in with the addition of the: Third unit of labor 10. The total output of a firm will be at a maximum where: 11. Marginal product is: the increase in total output attributable to the employment of one more worker. B. the increase in total revenue attributable to the employment of one more worker. C. the increase in total cost attributable to the employment of one more worker. D. total product divided by the number of workers employed. 12. Which of the following is correct? A. When total product is rising, both average product and marginal product must also be rising. B. When marginal product is falling, total product must be falling. C. When marginal product is falling, average product must also be falling. Where marginal product is greater than average product, average product is rising.
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13. Which of the following statements concerning the relationships between total product (TP), average product (AP), and marginal product (MP) is correct? 14. Which of the following is most likely to be a variable cost? 15. Answer the question on the basis of the following cost data: Refer to the data. The total variable cost of producing 5 units is:
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