Question

6. Dr. Khan starts his own dental practice after quitting his $150,000 job at The Mall Dental Clinic. His revenues for the first year are $500,000. He paid S90,000 în rent for the dental office, S60,000 for his office manager's salary, $24,000 for the dental hygienist, S150,000 for insurance, and S6,000 for other miscellaneous costs. The normal profit from running his business is $20,000 A) His accounting profit is $350,000 B) His economic profit is S150,000. C) His economic profit is zero. D) His accounting profit is zero. 7. Dr. Khan starts his own dental practice after quitting his $150,000 job at The Mall Dental Clinic. His revenues for the first year are $500,000. He paid $90,000 in rent for the dental office, S60,000 for his office manager's salary, $24,000 for the dental hygienist, S150,000 for insurance, and S6,000 for other miscellaneous costs. The normal profit from running his business is $20,000 A) His explicit costs are $330,000. B) His implicit costs are $170,000. C) His economic profit is zero. D) All of the answers above are correct. 8. The long run is a time period that is A) five years or longer. B) long enough to change the amount of labor employed. C) long enough to change the size of the firm's plant and all other inputs. D) long enough to change the amount of labor employed but not to change the size of the plant 9. If9 workers can produce 1,550 units of output and 10 workers can produce 1,700 units of output, then the marginal product of the 10th worker is A) 1,700 units B) 1,500 units C) 150 units D) 170 units 10. The principle of decreasing ( diminishing) returns states that as a fim uses more of a A) fixed input, witha given quantity of variable inputs, the marginal product of the fixed input eventually decreases. B) variable input, total output will increase indefinitely C) variable input, with a given quantity of fixed inputs, the marginal product of the variable input eventually decreases D) variable input, output will begin to fall immediately