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Home / Questions / If you, as sole proprietor of a corner grocery store, work 15 hours per day, six days a

# If you, as sole proprietor of a corner grocery store, work 15 hours per day, six days a

If you, as sole proprietor of a corner grocery store, work 15 hours per day, six days a
week but do not take a money wage payment, then the cost to your firm of your labor is
your

a.opportunity cost and is considered an explicit cost

b.opportunity cost and is considered an accounting cost

c.opportunity cost and is considered an implicit cost

d.explicit cost and is considered an opportunity cost

e.implicit cost even though it is considered an explicit cost

55.              Suppose your accountant told you that the economic profit you made last year was
\$50,000. You would be pleased because the \$50,000 represents your total revenue minus

a.implicit costs

b.monetary costs

c.explicit costs

d.both implicit costs and explicit costs

e.the difference between explicit and implicit costs

56.              Suppose your accountant told you that the \$50,000 you made last year was the total
revenue you earned minus both explicit and implicit costs. You would be pleased because
that \$50,000 represents your

a.economic loss

b.economic profit

c.normal profit

d.money receipts and payments and you came out ahead by \$50,000

e.accounting profit

57.              Suppose your accountant told you that the \$50,000 you made last year was your normal
profit. When you asked him what your accounting profit was he replied that it was
precisely the same as your normal profit. You wouldn’t have to ask what your economic
profit was because you know it must be

a.0

b.\$50,000

c.\$100,000

d.\$50,000 loss

e.\$100,000 loss

58.              You developed a new technology for weather stripping windows. Your monopoly in this
market turns out to be lucrative. Your total revenue was \$75,000 and your total cost—
explicit and implicit costs combined—was \$25,000. The \$50,000 difference represents
your

a.accounting revenue

b.accounting profit

c.economic profit

d.economic revenue

e.normal profit

59.              When compared to monopoly and monopolistic competition, the perfectly competitive
market structure

a.has somewhat higher barriers to entry

b.produces the lowest output at the lowest prices

c.is the least efficient

d.gives the greatest output at the lowest prices

e.earns the highest normal profit

60.              One reason why a monopolist might be able to provide greater output at lower costs than
other market structures is that some monopolists

a.earn exceptional profit which allows them to lower price and costs

b.produce high volume output which allows them to capture economies of scale so that
their ATCs are lower

c.have high market share which allows them to raise price and lower cost at the same
time

d.exploit their labor force by offering low wage rates so that costs are lower

e.do not advertise, thereby reducing costs

Dec 12 2019 View more View Less