Economic profit for companies that supply nonrenewable resourcesMultiple choice question.is guaranteed because prices received in the market for their products are high.is positive because the cost of production is low.is negative because resource extraction costs are high.is not guaranteed because production costs are unknown.is not guaranteed because future selling prices for their products are uncertain.

Why are profits not guaranteed for firms supplying nonrenewable resources?Multiple select question.There is a low likelihood of these resources being purchased.Extraction can be very expensive.The price they will receive in markets is uncertain.Technology has virtually eliminated the need for these resources.

Economic profits in a short-run equilibriumQuestion 1Select one:a.are never negative because a firm would shutdown if profits are negative.b.may be positive, zero, or negative.c.will never exceed the difference between marginal revenue and marginal cost per unit of output.d.are always zero.

If resources were perfectly substitutable in all activities, which of the following would be true? aOutput of all goods could be increased at zero opportunity cost. bThe production possibilities curve would be a straight line. cScarcity of resources would be eliminated. dSpecialization and mutually beneficial trade would be impossible. eNo country or individual would have a comparative advantage in any activity.

Economic problem means scarcity of resources.Question 5AnswerTrueFalse

The economic profit of a firm includes the opportunity costs of all resources used in production. What do these opportunity costs measure?A.Explicit costsB.The value of resources at their best alternative useC.The amount of profit earnedD.The economic condition of the firm, by listing everything the firm ownsE.The growth of the firm over time