Normal rate of return is
A) accounting profit.
B) an explicit cost.
C) economic profit.
D) the amount that must be paid to obtain investment in a business.
D
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In the United States, ________ percent of all firms are sole proprietorships
A) 4 B) 14 C) 72 D) 82
Which of the following will most likely accompany an unanticipated increase in aggregate demand?
a. an increase in real output b. an increase in unemployment c. a decrease in real GDP d. a decrease in the demand for resources
Which of the following is correct concerning opportunity cost?
a. Except to the extent that you pay more for them, opportunity costs should not include the cost of things you would have purchased anyway. b. To compute opportunity costs, you should subtract benefits from costs. c. Opportunity costs and the idea of trade-offs are not closely related. d. Rational people should compare various options without considering opportunity costs.
If a firm's production function is Leontief and the price of capital goes down, the:
A. cost-minimizing combination of capital and labor does not change. B. firm must use less capital in order to minimize the cost of producing a given level of output. C. firm must use more capital in order to minimize the cost of producing a given level of output. D. firm must use less labor in order to minimize the cost of producing a given level of output.