When a firm's economic profit is greater than zero, the accounting profit is called normal profit
a. True
b. False
Indicate whether the statement is true or false
False
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A theory is an abstraction used often by economists to
A. describe a problem. B. keep all assumptions in their proper places. C. explain why things work the way they do. D. describe a hierarchical ordering of facts. E. arrange variables into a graphical format.
Microeconomics includes the study of the
A) aggregate effects on the national economy. B) nationwide unemployment rate. C) reasons why the government changes interest rates. D) recessions and inflation in the global economy. E) choices made by individuals and businesses.
Other things equal, a price floor will reduce consumer surplus, but it will increase producer surplus if the government buys up any surplus at the price floor
a. True b. False Indicate whether the statement is true or false
What is the difference between economic and accounting profit? Why is a distinction between them important?
What will be an ideal response?