Accounting profit is:
a. equal to economic profit if a normal profit is earned
b. never less than economic profit
c. less than economic profit only when implicit costs are greater than explicit costs
d. greater than economic profit only when implicit costs are greater than explicit costs
e. always less than economic profit
A variable cost is one that changes:
a. as output changes
b. in the short run only
c. year to year
d. month to month
e. in the long run only
In the short run, which of the following is likely to be a variable cost to a physician?
a. examining table
b. liability insurance
c. insurance forms
d. office space
e. computers
Production of Hollywood movies is an increasing cost industry. Which of the following contributes the most to this condition?
a. The demand for painters to paint the theatres
b. The demand for carpenters to build sets
c. The cost of hiring known box-office superstars
d. The demand for printers to print tickets
e. The cost of advertising for the shows
It is possible for a firm to enjoy a short-run producer surplus, while at the same time suffering a short-run economic loss? True or false.