The output level where a firm's profit is maximized will always be the quantity where Total revenue equals total implicit costs the difference between marginal revenue and marginal cost is maximized O price equals average total cost price equals average variable cost marginal cost equals marginal revenue If a firm produces 40 units when it hires a total of 20 unit of inputs and 70 units when it hires a total of 40 unit of inputs the firm is experiencing O constant returns to scale productive efficiency O econotales of scale increasing returns to scale diseconomies of scale A chocolate manufacturer earned 1 million dollars in total revenue, which was enough to cover all of its explicit costs. However, an economist concludes that the firm is not earning a normal profit or an economic profit. Which of the following must be true? accounting profits are greater than explicit costs. implicit costs are less than explicit costs fixed costs are greater than accounting profits implicit costs are greater than accounting profits explicit costs are less than implicit costs In the long run, the output of a firm increases by 30% when the amount of its input increases by 30%, the firm must be experiencing diminishing marginal utility decreasing returns to scale diseconomies of scale constant returns to scale increasing returns to scale Max recently opened a T-shirt printing company. He rents factory space for $45,000, hires one office manager at a salary of $35,000, and pays a total of $25,000 in production expenses. Prior to starting this business he paid a total of $20,000 in tuition to earn his business degree. His best alternative would be working for a local printing company earning a salary and benefits worth $60,000 per year. Assuming he incurs no other costs, how much total revenue must Max's company receive to earn zero economic profit? O $165,000 $105,000 $45,000 $185,000 $125,000