Gregory Mankiw] Principles of Microeconomics, Chapter 13 and 14 mid practises
When new firms enter a perfectly competitive market, what will be the result?
a. Profits of existing firms will fall.
b.Entering firms will earn zero profit as soon as they enter.
c.Existing firms will see their costs rise.
d.Consumers will likely observe increasing prices.
As a general rule, when accountants calculate profit they account for explicit costs. What do they usually ignore?
a. certain outlays of money by the firm
b. implicit costs
c. operating costs
d. fixed costs
In calculating accounting profit, what do accountants typically exclude?
a. long-run costs
b.sunk costs
c. explicit costs of production
d. opportunity costs that do not involve an outflow of money