What were economic profits

Question

1. In the short run:

1. some inputs are variable and some are fixed.
2. all inputs are variable.
3. the time period cannot exceed one year.
4. all inputs are fixed.

2. Which of the following is most likely to be an implicit cost of production?

1. Interest paid on a loan
2. Payments for inputs purchased from other companies
3. Rental income from real property
4. Wages paid to skilled workers
5. Rental income not received from use of a self-owned piece of land

3. Ralph's Travel Agency had accounting profits of $50,000 and implicit costs of $30,000. What were economic profits?

1. $50,000
2. $20,000
3. $30,000
4. The amount cannot be determined from the information given.

4. An example of a horizontally integrated firm is one that:

1. owns several plants in the same state.
2. produces a variety of goods and sells them in widely disparate markets.
3. owns several plants, each handling a different stage of production.
4. owns several plants, each manufacturing the same product.
5. uses highly automated assembly line techniques.

5. Because of diminishing marginal product in the short run, a tripling of the total product (assuming input prices are constant) requires:
increased average fixed cost.

1. a tripling of total cost.
2. a tripling of marginal cost.
3. less than a tripling of total variable cost.
4. more than a tripling of total variable cost.