Author Question: A firm has 200 million in total revenue and explicit costs of 190 million. If its owners have ... (Read 78 times)

jilianpiloj · **on:** Jun 30, 2018

A firm has 200 million in total revenue and explicit costs of 190 million. If its owners have invested 100 million in the company at an opportunity cost of 10 percent interest per year, the firm's accounting profit is:
a. 400 million.
b. 100 million.
c. 80 million.
d. 10 million.
e. zero.

Question 2

Which of the following best describes a stock rather than a flow?
a. Each week, you save 100.
b. Each week, you buy 10 worth of gasoline.
c. Each week, you buy 50 worth of groceries
d. You earn 500 per week at your job.
e. You own 5,000 worth of government bonds.