Author Question: Joe quits his job as an insurance agent and opens his own sporting goods store. If his profits as ... (Read 39 times)

ishan · **on:** Jun 29, 2018

Joe quits his job as an insurance agent and opens his own sporting goods store. If his profits as measured by his accountant are greater than zero, then

A) he made a good move because he is earning above normal profits.
B) his economic profit must be greater than zero.
C) his opportunity costs must be zero.
D) There is not enough information to determine his economic profit, if any.

Question 2

The goal of a perfectly competitive firm is to maximize its

A) normal profit.
B) revenue.
C) output.
D) economic profit.