Author Question: Economic profit equals accounting profit minus A) explicit costs. B) implicit costs. C) fixed ... (Read 660 times)

HudsonKB16 · **on:** Jul 1, 2018

Economic profit equals accounting profit minus

A) explicit costs.
B) implicit costs.
C) fixed costs.
D) variable costs.

Question 2

Suppose the short-run production function is q = 10 L. If the wage rate is 10 per unit of labor, then AFC equals

A) 0.
B) 1.
C) 10/q.
D) It cannot be determined from the information provided.