Pure or economic profit is:
A. the amount by which accounting profits exceed normal profits.
B. determined by subtracting explicit costs from total revenue.
C. the return required to retain entrepreneurial talent in some particular line of production.
D. the return to any resource the supply of which is perfectly inelastic.
Answer: A
You might also like to view...
In the figure above, what can be said about point B?
A) It can be reached only after economic growth occurs. B) It can be attained only if some resources are left unused. C) It represents all resources being devoted to the production of apples. D) It represents all resources being devoted to the production of oranges.
The housing market of the early to mid-2000s did not feature:
a. "teaser rates" on home mortgages. b. a dramatic rise in housing prices. c. widespread calls to end "predatory" lending practices. d. "subprime" mortgages.
Which of the following transactions would NOT contribute to the GDP?
A. the purchase of a bag of chips from a convenience store B. the purchase of 100 shares of Apple stock C. the purchase of a new Tesla automobile D. the purchase of gasoline for your Honda
When many substitutes exist for a good, demand will be
A. unit-elastic. B. perfectly unit-elastic. C. inelastic. D. elastic.