A business owner makes 50 items a day. He spends 8 hours in producing those items. If hired elsewhere he could have earned 10 an hour. The item sells for 10 each. Production occurs seven days a week. If the explicit costs total 10,000 a month, the accounting profit for the month equals:
a. 1,760
b. 2,240
c. 11,760
d. 5,000
Question 2
Accountants and Economists differ in their calculations of profits in that;
a. economists consider sunk costs
b. accountants consider implicit costs only
c. accountants consider explicit costs only
d. all of the above
Multiple-dose drug administration: drug A and drug B are administered every 12 hours; drug B reaches
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