Question

15 multiple choice 1 point
the fact that a consumer is not required to buy the goods that a given firm produces, as well as the fact that the consumer might want the goods a firm produces, but may choose to buy from other firms instead
will reduce the revenue a firm receives and it should shut down.
means the firm has reached it shutdown point and should exit.
is part of the process to a sustained pattern of profits.
are two stark realities any business firm must recognize.
16 multiple choice 1 point
economic profit can be derived from calculating total revenues minus all of the firm’s costs,
excluding its opportunity costs.
including its opportunity costs.
including its marginal revenue.
excluding its marginal revenue.

Explanation:

Question 15

The situation describes consumer choice and competition (firms competing for consumers). The first two options incorrectly link it to shutdown/exit (shutdown/exit depend on cost - revenue comparisons, not just consumer choice). The third option is wrong as consumer choice and competition make sustained profits hard. The fourth option is correct as firms must recognize consumers can choose not to buy or buy from others.

Economic profit is total revenue minus all costs, including explicit and implicit (opportunity) costs. Accounting profit excludes opportunity costs. Marginal revenue is about additional revenue, not part of economic profit calculation. So economic profit includes opportunity costs.

Answer:

D. are two stark realities any business firm must recognize.

Question 16