Author Question: The difference between the economic and accounting costs of a firm are A) the accountant's fees. ... (Read 106 times)

waynest · **on:** Jul 1, 2018

The difference between the economic and accounting costs of a firm are

A) the accountant's fees.
B) the corporate taxes on profits .
C) the opportunity costs of the factors of production that the firm owns.
D) the sunk costs incurred by the firm.
E) the explicit costs of the firm.

Question 2

Refer to Table 5.4. If outcomes 1 and 2 are equally likely at Job A, and if at Job B the 20 outcome occurs with probability .1, and the 50 outcome occurs with probability .9, then

A) Job A is safer because the difference in the probabilities is lower.
B) Job A is riskier only because the expected value is lower.
C) Job A is riskier because the standard deviation is higher.
D) Job B is riskier because the difference in the probabilities is higher.
E) There is no definite way given this information to tell how risky the two jobs are.