Answer:
The correct answer is accounting profit is positive.
Explanation:
Economic profits are the difference between the total revenue earned by selling the goods and total costs incurred in the production process. It includes both implicit as well as explicit costs.
The explicit costs are the direct costs incurred in the production process. There is an actual payment involved.
The implicit costs are the indirect costs incurred. They are generally the opportunity cost of sacrificing the alternative option. There is no actual payment involved.
The accounting profits include only explicit costs incurred in the production process. It is the difference between total revenue earned and explicit cost.
A normal profit means zero economic profits. But accountable profits is higher than economic profits, so there will be some positive accountable profit.
Answer: In a bicycle shop, salespeople help shoppers choose the right frame size and handlebar position for a comfortable ride.
Answer: The correct answer is "E. both b and c.".
Explanation: A firm will maximize profit by producing that level of output at which "B. the additional revenue from the last unit sold equals the additional cost of the last unit." (<u>to the point where Marginal Income = Marginal cost</u>). And the "C. total revenue exceeds total cost by the largest amount".
Answer:
A. economic
Explanation:
Economic environment -
It consists of all the economic factors that can affect the economic market , consumers behavior , is referred to as the economic environment .
These factor are capable to alter any business .
Any changes in the monetary value , like cash , income , savings and interest rate can alter the economic environment as well .
Hence , from the given information of the question,
The correct option is A. economic environment .
