ECO week 3 quiz

When inputs are combined so that total production has the lowest possible cost, we are observing

 

The Southern Tree Trimming Corporation reported an accounting profit of $35,000 and a normal rate of return of 15 percent on capital and enterprise of $30,000. The opportunity cost of labor is $15,500. What is the economic profit?

 

Accounting profit is defined as

 

The long-run decision is to select

 

Last spring, Coil Spring Co. reported that average fixed costs had increased, but average variable costs were unchanged. This indicates that

 

Technical efficiency is

 

A firm that owns a wheat farm, a grain elevator, a flour mill, a commercial bakery, and a grocery store chain is

 

The cost of alternatives given up that do not carry dollar costs is

 

Firms exist for all but which one of the following reasons?