The definition of economic profit is
A. total revenues less fixed costs.
B. the difference between receipts from sales and cost of materials.
C. what is left over after all opportunity costs have been met including interest forgone.
D. gross profit less selling and operating expenses.
C. what is left over after all opportunity costs have been met including interest forgone.
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Refer to Figure 13.2. If Oliver's political views place him at the L4 position and George's political views place him at the C4 position, Bobby's preference for mayor is
A) Oliver Cousins. B) George Glass. C) Bobby is indifferent between the two candidates. D) Bobby definitely does not like either candidate.
Rather than accept delivery, most traders in futures markets choose
A) to make margin payments. B) settlement by offset. C) to mark-to-market. D) to make arbitrage payments.
The basic difference between a public bureau and a market firm is that the bureau
a. has an incentive to maximize profits b. has no incentive to minimize costs c. managers do not attempt to maximize their self interest d. managers are more likely to be concerned with the public interest than their own self interest e. faces a budget constraint placed up it by the voters
In applying the lower of cost or market rule, the floor is defined as:
a) current replacement cost b) historical cost c) net realizable value d) net realizable value less a normal profit margin