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gineers? a. It will rise. It will remain unchanged. c. It will fall. d. It will

ID: 1129867 • Letter: G

Question

gineers? a. It will rise. It will remain unchanged. c. It will fall. d. It will rise or fall; either is possible. at is the relationship between accounting profit and economic pro a. economic profit = accounting profit + explicit costs accounting profit-economic profit-implicit costs accounting profit = economic profit + implicit costs economic profit = accounting profit-explicit costs b. d. 15. How do perfectly competitive firms and monopolists differ? A perfectly competitive firm's short-run profit is always zero; a monopolist can positive short-run profit. A perfectly competitive firm's marginal-revenue curve is perfectly elastic; a m marginal-revenue curve is downward sloping. a. b. c. A perfectly competitive firm cannot choose its level of output, a monopolist d. A perfectly competitive firm sets average revenue equal to marginal cost a If cigarettes and marijuana had been found to be substitutes, what would a tax level of output. sets average revenue equal to marginal revenue. 16. increase the demand for marijuana decrease the demand for marijuana increase the quantity demanded of marijuana a. b.

Explanation / Answer

Economic profit = Accounting profit - Implicit cost

Therefore, Accounting profit = Economic profit + implicit cost

OPTION C