Zipco's economic profit is equal to its

Zipco's economic profit is equal to its
 a. total revenue minus accounting profit
  b. total revenue minus explicit costs
  c. total revenue plus accounting profit
  d. total revenue plus opportunity costs
  e. accounting profit minus implicit costs

QUESTION 2

Economic profit is defined as
 a. total revenue minus price
  b. price minus quantity
  c. total revenue minus what must be paid to resources to attract them from their best alternative use
  d. total revenue divided by what must be paid to resources to attract them from their best alternative use
  e. total revenue plus what must be paid to resources to attract them from their best alternative use

QUESTION 3

Zipco's accounting profit is equal to its
 a. total revenue minus opportunity costs
  b. total revenue plus opportunity costs
  c. total revenue minus imputed costs
  d. total revenue minus explicit costs
  e. total revenue minus explicit and implicit costs

QUESTION 4

Suppose Ernie gives up his job as financial advisor for P.E.T.S., at which he earned 30,000 per year, to open up a store selling spot remover to Dalmatians. He invested 10,000 in the store, which had been in savings earning 5 percent interest. This year's revenues in the new business were 50,000 . and explicit costs were 10,000 . Calculate Ernie's economic profit.
 a. 10,000
  b. 50,000
  c. 20,000
  d. 40,000
  e. 9,500

QUESTION 5

Suppose Ernie gives up his job as financial advisor for P.E.T.S., at which he earned 30,000 per year, to open up a store selling spot remover to Dalmatians. He invested 10,000 in the store, which had been in savings earning 5 percent interest. This year's revenues in the new business were 50,000 . and explicit costs were 10,000 . Calculate Ernie's accounting profit.
 a. 10,000
  b. 50,000
  c. 20,000
  d. 40,000
  e. 9,500

QUESTION 6

Maryann and Don want to open their own deli. To do so, Maryann must give up her job, at which she earns 20,000 per year, and Don must give up his part-time job, at which he earns 10,000 per year. They must liquidate their money market fund, which earns 1,000 interest annually. The rent on the building is 10,000 per year, and expenses for such necessities as utilities, corned beef, and pickles are 35,000 annually. What minimum amount of revenue per year would make it worthwhile, financially, for Maryann and Don to operate the deli?
 a. 10,000
  b. 35,000
  c. 45,000
  d. 31,000
  e. 76,000

QUESTION 7

Which of the following would be shown on IBM's accounting statement?
 a. revenue, implicit costs, explicit costs, and economic profit
  b. revenue, implicit costs, explicit costs, and accounting profit
  c. revenue, explicit costs, and economic profit
  d. revenue, explicit costs, and accounting profit
  e. revenue, implicit costs, and accounting profit

QUESTION 8

Economic profit is defined as
 a. total revenue minus implicit costs
  b. total revenue plus explicit costs
  c. total revenue plus implicit costs
  d. wages plus interest minus rent
  e. total revenue minus implicit and explicit costs