Mario's company definitely has economic losses in which of the following situations? O Implicit opportunity costs exceed direct financial costs. O Total revenue exceeds implicit opportunity costs. Total costs exceed total revenue. O Total revenue exceeds direct financial costs.

Mario's company definitely has economic losses in which of the following situations? O Implicit opportunity costs exceed direct financial costs. O Total revenue exceeds implicit opportunity costs. Total costs exceed total revenue. O Total revenue exceeds direct financial costs.

Microeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506893

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter8: Costs And The Supply Of Goods

Section: Chapter Questions

Problem 3CQ

See similar textbooks

Related questions

Q: A firm's average total cost of production is Rs.300 at 5 units of output and Rs.320 at 6 units of…

A: A firm's average total cost of production is Rs.300 at 5 units of output and Rs.320 at 6 units of…

Q: QUESTION 3 Why is it important to distinguish between the short run and the long run when making…

A: The objective of the question is to understand the importance of distinguishing between short-run…

Q: 4. On the graph, where do economies of scale exist? A. In the range of outputs from A to B. OB. In…

A: Economies of scale is when the increase in output decreases the long run average cost. Diseconomies…

Q: What you give up to obtain an item is called: Select one: O a. variable cost O b. direct cost OC.…

A: The monetary value that a business has expanded to manufacture something is referred to as cost. The…

Q: In the decision to stop production of product A to and start producing product B in the same…

A: When a person, investor, or company chooses one option over another, they are missing out on…

Q: 2. Individual Problems 3-3 You pay $100 for a ticket to a basketball game. After three quarters, the…

A: For the purpose of understanding how and why people behave in the manner they do in the real world,…

Q: Output Total Cost Fixed Cost Variable Cost Marginal Cost Average Fixed Cost Average Variable Cost…

A: Marginal cost is the additional cost incurred when output is increased by one unit. It is the ratio…

Q: The price for the effort and energy of the entrepreneur used in production is part of the _____. a.…

A: Production is the process of using the factors of production to make useful output. Cost refers to…

Q: 2. Fill in the table below. Output Fixed Cost 0 1 2 $120 Vanable Cost SO $60 $80 $90 $105 Total Cost…

A: In economics, total cost (TC) is the total cost of producing a given quantity of output. It is the…

Q: 3. Determined whether each statement is true or false and provided an explanation. A. If a firm has…

A: "Since you have asked a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Assume the following: • Accounting Profit = $100 • Opportunity Cost = $80 What does economic profit…

A: The accounting profit is the difference between the total revenue and explicit cost. While the…

Q: Suppose Joann knows the average total cost of producing 9 gallons of ethanol is $5, while the…

Q: Fixed Cost Variable Cost Average Variable Marginal Cost Quantity Total Average Total Cost Average…

A: A firm has to bear many cost to start a production process. Total cost is the sum of all costs…

Q: In what sense is profit a cost of production? Select one: O a. Profit levels in each industry are…

A: ‘Profit’ or ‘Economic Profit’ is the difference between the revenue earned from the production and…

Q: Productivity decreases when O a. Output and hours worked decrease at the same rate Ob. Hours worked…

A: Productivity refers to the ability of the business to produce more output. Productivity determines…

Q: Imagine a fırm that has the following costs and revenue: Revenue: $120,000 Input Costs: $100,000…

A: An economic profit is a difference between the money generated by a business entity's outputs and…

Q: Question 20 If economic profits are negative O a. Accounting profits exceed opportunity cost O b.…

A: If economic profits are negative then the Accounting profits are below opportunity cost. Hence…

Q: Compute the Cost. Edward the entrepreneur takes 2 hours to cut a lawn and he cuts 100 lawns per…

A: Marginal Cost (MC) represents the additional cost incurred by producing one more unit of output. It…

Q: Flow 1 Flow 2 A Flow 3 B Flow 4 Refer to the diagram. (There are a couple of lines missing. It…

A: The illustration shows two economic entities, households and firms, with the flow of money, inputs…

Q: Quèstion 25 Opportunity cost is considered as: O Implicit cost O Explicit cost O Accounting cost…

A: Opportunity Cost is the value of next best alternative (which is available after choosing the…

Q: Which of the following relationship is correct? O When marginal product (MP)starts to decrease,…

A: MP is the additional change in total output due to produce of one additional unit of output MC is…

Q: Which of the following is an implicit cost? i. wages paid to workers ii. the normal profit iii. the…

A: Implicit cost is that cost in which there is no exchange of cash and is not recorded for accounting…

Q: Figure 4.2 O there is waste. O it is very difficult and very expensive to increase output once the…

A: TC represents "Total Cost." A financial statistic called total cost is used in business and…

Q: 1. Consider the production functions for good X and good Y: X = K? +L ; Y = 20/KL A. Show and…

Q: Ahmed is considering his plans for the coming weekend. He is currently working as a marketing…

A: Scarcity is a basic problem in economics because of the limited availability of resources. Resources…

Q: 44)How does the average-fixed-cost curve behave? A. It declines as long as it is above marginal…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Refer to the figure below. What can we conclude from this figure? Graph of Per Unit Costs What is…

A: The creation of additional output due to the result of additional input being placed into the…

Q: Payment made to others is known as O a. Implicit cost O b. Production cost O c. None of these given…

A: When a firm or individual makes a payment to someone else, in the form of salary or rent, etc. It is…

Q: Economic costs of production differ from accounting costs in that Select one: a. economic costs…

A: There are many associated costs of production in the process of production. These costs can be of…

Q: Diminishing marginal returns occur because O average and marginal relationships behave very…

A: Marginal return means the return from the next input hired. It is the return of the one last…

Q: 2. Explain economies of scope and provide an example.

A: The firms and businesses tend to operate in the markets with the motive of maximizing the level of…

Q: The Flying Elvis Copter Rides Quantity Total Fixed Variable Marginal Average Fixed Average Variable…

A: This can be defined as a cost that shows the type of cost that an individual, business, or any other…

Q: Suppose Jackie runs an apple farm. Jackie has one fixed factor of production. Suppose that Jackie's…

A: In a typical short-run average cost curve, the shape is U-shaped with the minimum value of the cost…

Q: The first building that is constructed by a construction company will take longer to construct than…

A: The significance of productivity in the contemporary economic scenario cannot be overstated. It…

Q: Why would a firm be happy to earn zero economic profits? Because zero economic profit means that the…

A: Accounting costs include only explicit cost. Economic costs include Explicit cost and implicit cost.…

Q: Economies of scale in production and sale is one of the sources of possible... Select one: O a.…

A: Economies of scale implies there's a decrease in average cost with increase in output.

Q: $350,000. Calculate the accounting and opportunity cost if she leaves the job and opens her…

A: Accounting cost is the cost incurred to take an action . These are explicit cost , which means these…

Q: Other things being equal, an increase in the average product of labor in steel production will…

A: The total output amount which could be produced by a firm with the given labor quantity is being…

Q: .Idea generation is meaning the systematic search for new product ideas Agree Disagree O Developing…

A: 1. This given statement is Right (agree) Ideal generation refers to the systematic search for new…

Q: QUESTION 35 As you add more and more units of a variable factor to a fixed factor, marginal output…

A: According to the law of variable proportion as more and more units of variable factor ( say labor)…

Q: PPF is based on Select one: a. Indirect cost O b. Opportunity cost c. Variable cost O d. Fixed cost

A: The production possibility frontier (PPF) the combination of two goods and services which can be…

Q: Diminishing a. Average Productivity b. Consumption C. Marginal Productivity d. Revenue 12. The…

A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Identify a correct statement about household production. O Household production is more likely to…

A: Household production is more likely to occur when the opportunity cost of household work is…

Q: Average fixed cost, average total cost a -Why does average fixed cost continuously fall as output…

A: Average fixed cost- It is the cost that is per unit of Total fixed cost. AFC=TFCQ Average total…

Q: 1. If the marginal product of an input is falling, then what must be true? Average fixed costs must…

A: Marginal product means the extra output generared by adding a unit of input.

Question

Mario's company definitely has economic losses in which of the following situations?
O Implicit opportunity costs exceed direct financial costs.
O Total revenue exceeds implicit opportunity costs.
Total costs exceed total revenue.
O Total revenue exceeds direct financial costs.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Can you pls help me for E-Learning questions.
The Mazoon Company paid for the advertisement of their milk and milk products to Oxygen Advertising Agency. Choose the cost incurred by Mazoon company. O a. Production cost O b. Explicit cost O c. All of these O d. Opportunity cost
Marginal cost is the one more unit of a good and opportunity cost of producing increases as production O price that must be paid to consume; decreases as consumption O opportunity cost of producing: decreases as production O price that must be paid to consume; increases as consumption of the good increases.
Economic costs of production differ from accounting costs in that Select one: a. economic costs include expenditures for hired resources while accounting costs do not. b. economic costs add the opportunity costs of a firm using its own resources while accounting costs do not. c. accounting costs include expenditures for hired resources while economic costs do not. d. accounting costs are always larger than economic costs. e. Economic costs are historical costs
The concept of opportunity cost is that the economic cost of using a factor of production is the alternative use of that factor that is given up. O the cost of production varies depending on the opportunity for technological application. O taking advantage of investment opportunities involves costs. O in a market economy, taking advantage of profitable opportunities involves some money cost.
PPF is based on Select one: a. Indirect cost O b. Opportunity cost c. Variable cost O d. Fixed cost
1. Why do marginal costs tend to rise, and marginal benefits tend to fall? Explain. 2. Is it possible to avoid Diminishing Marginal Return? Why? Explain 3. Suppose that the Law of Diminishing Returns sets in immediately (that is, there is no range of output over which the Division of Labor holds). What would the short run marginal cost, average cost, and average variable cost curves look like? Explain.
What you give up to obtain an item is called: Select one: O a. variable cost Ob. opportunity cost O c. monetary cost O d. direct cost
4 pls i only need the answer thank you
Quantity Total Cost Variable Marginal Fixed Average Total Average Fixed Average Variable Cost Cost Cost Cost Cost Cost $50 $50 SO 1 $150 A D H. K $120 $120 M In the table above, what is the value of E? N R O $150 O $100 O $50 O $25
Output Total Cost Fixed Cost Variable Cost Marginal Cost Average Fixed Cost Average Variable Cost Average Total Cost (Helicopter rides) (Dollars) (Dollars) (Dollars) (Dollars) (Dollars per ride) (Dollars per ride) (Dollars per ride) 50 50 0 150 A B G H 1 M N O a. $25 Refer to Table 13-7. What is the value of C? b. $100 0 1 2 3 C. $50 O d. $200 Table 13-7 The following table shows the production costs for The Flying Elvis Copter Rides. 120 P D E K 120 F L R
An employee from the Mixing department worked 36 hours during the week. His salary is $12.00 per hour with a fringe benefit of 20%. During his work, he was able to do 10,000 units. How do you classify this cost for your budget? O A. Direct Labor O B. Materials c. Indirect Labor OD. Indirect Costs OE. None of the above