Author Question: A normal profit is A) revenues minus opportunity cost of zero. B) revenues minus accounting cost ... (Read 80 times)

codyclark · **on:** Jul 1, 2018

A normal profit is

A) revenues minus opportunity cost of zero.
B) revenues minus accounting cost of zero.
C) a zero accounting profit.
D) revenues minus accounting and opportunity cost of zero.

Question 2

Suppose the corn-producing industry of the U.S. is a price taker in the world market and government puts a ban on imports. The corn industry also receives subsidy from the home government. Then

A) social welfare will increase if the ban on imports is removed.
B) everyone will be better off if both ban on imports and subsidy are removed.
C) social efficiency will be improved if both ban on imports and subsidy are removed.
D) the deadweight loss is reduced if subsidy is removed.