A. accounting profit will exceed economic profit
B. economic profit will always be zero
C. economic profit will exceed accounting profit
D. accounting profit will always be zero
E. economic profit and accounting profit will be equal
Related Mcqs:
- Pricing to cover variable costs and some fixed costs as in the case of some automobile distributorships that sell below total costs is typical of which of the following pricing objectives ?
A. current profit maximization
B. product quality leadership
C. Market share leadership
D. Survival - By adjusting the model of comparative advantage to include transportation costs along with production costs we would expect ?
A. The prices of trade goods to be lower than when there are no transportation costs
B. specialization to stop when the production costs of the trading partners equalize
C. The volume of trade to be less than when there are no transportation costs
D. The gains from trade to be greater than when there are no transportation costs - If marginal costs equal average total costs ?
A. average total cost is falling
B. average total cost is raising
C. average total cost is maximized
D. average total cost is minimized - When marginal costs are below average total costs ?
A. average fixed cost is rising
B. average total cost is falling
C. average total cost is raising
D. average total cost is minimized - If the price is less than the average costs but higher than the average variable costs ?
A. The firm is making a loss and will shutdown in the short term
B. The firm is making a profile
C. The firm is making a loss but will continue to produce in the short term
D. The firm is making a loss and is making a negative contribution to fixed costs - 3M runs a Pollution a Prevention Pays program that has led to a substantial reduction in pollution and costs this would be an example of responding and costs. This would be an example of responding to which of the following ?
A. Nader’s raiders
B. The green movement
C. Governmental regulation
D. International competition - Which branch of accounting provides information to help the management of a firm evaluate production costs and efficiency ?
A. Efficient Account
B. Cost Accounting
C. Ultra-country economic risk
D. Outcome risk - An increase in the costs of production will ?
A. Shift demand outwards
B. Shift demand inwards
C. Shift supply outwards so more is supplied at each and every price, all other things unchanged
D. Shift supply inwards - Costs that do not vary with production or sales levels are called ?
A. fixed costs
B. variable costs
C. standard costs
D. independent costs - Regulations that arise to ensure that firms take responsibility for the social costs of their products or production processes stem from which reason for government legislation of business ?
A. To protect companies form each other
B. To protect consumers from unfair business practices
C. To protect the interests of society
D. To protect businesses from unfair consumer demands
