Suppose a firm sells its product at a price lower than the opportunity cost of the inputs used to produce it. Which is true?

(A) The firm will earn accounting and economic profits.
(B) The firm will face accounting and economic losses.
(C) The firm will face an accounting loss, but earn economic profits.
(D) The firm may earn accounting profits, but will face economic losses.

Some overhead charges tend to vary almost directly, some tend to remain constant while some again vary in part with the volume and in part remain constant. This statement describes sequentially the following:

(A) Variable, fixed and semi-variable overheads
(B) Fixed, semi-variable and variable overheads
(C) Semi-variable, variable and fixed overheads
(D) Variable, semi-variable and fixed overheads

error: Content is protected !!