Author Question: The accountant's definition of profits, or the definition used for tax purposes, is not wholly ... (Read 215 times)

oliviahorn72 · **on:** Jun 29, 2018

The accountant's definition of profits, or the definition used for tax purposes, is not wholly satisfactory from the economist's point of view because

A) accountants are paid by business firms and consequently tend to exaggerate the size of profits.
B) accountants deal with empirical data while economists are interested in theoretical explanations.
C) accountants tend to minimize profits in order to avoid the payment of unnecessary taxes.
D) accounting costs do not include the entrepreneur's opportunity costs.

Question 2

Refer to the table above. What is the average fixed cost of producing 110 units of the good?

A) 1.36
B) 1.72
C) 37.50
D) 150