Accountants only concern themselves with direct costs which involve things like the cost of materials, rent, and labor for instance. This profit is aptly named "accounting profit".
Economists consider those costs as well, but they also include indirect costs such as opportunity costs of other investments. Recall that opportunity cost is the cost of what you give up if you make a certain decision.
For instance, if a car factory makes 4 door sedans, but it could be making more money with SUVs, then the opportunity cost is high and the economic profit is lower compared to the accounting profit.
Answer:
A. The natural environment
Explanation:
Answer:
The intuition behind the real wealth effect is that when the price level decreases, it takes less money to buy goods and services. The money you have is now worth more and you feel wealthier. So, in response to a decrease in the price level, real GDP will increase.
Explanation:
Learn the local language, wear more neutral clothing instead of their traditional or foreign style. Make safe havens in the community, some assimilation is done to protect the current culture of the area, but some are done to protect the new movement of culture.
Answer:
To calculate profit, producers subtract total costs from total income.
Explanation:
This is a basic premise of cost theory. Total revenue is obtained by multiplying the price by the quantity sold. The total cost is the multiplication of the cost of each unit by the quantity.
Profit is the decrease in revenue by cost.
