the production process quiz 3

Question 1

economic profit

Answer 1

total rev minus total costs, including both explicit and implicit costs

Question 2

accounting profit

Answer 2

total rev minus total costs, ignores implicit costs.

Question 3

labor inputs

Answer 3

include skilled workers & unskilled workers as well as the entrepreneurial efforts of the firm’s managers.

Question 4

material inputs

Answer 4

goods that the firm buys & transforms into final products.
(steel, plastics, electricity, water, etc.)

Question 5

capital inputs

Answer 5

include land, buildings, machinery and other equipment, as well as inventories.