Normal profit is:
A. determined by subtracting implicit costs from total revenue.
B. determined by subtracting explicit costs from total revenue.
C. the return to the entrepreneur when economic profits are zero.
D. the average profitability of an industry over the preceding 10 years.
Answer: C
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Most American firms are corporations.
Answer the following statement true (T) or false (F)
Refer to the figure above. Everything else remaining unchanged, at what rate will the wage be held if there is downward wage rigidity in the market, when the demand curve shifts to LD2?
A) $50 B) $30 C) $40 D) $20
According to the table shown, if Bob is earning $30,000 in the United States and Bill is earning $40,000 in Mexico, what can be said about their standards of living?
This table shows the price-level adjustment as compared to the United States.
A. Bill is earning more in real terms than Bob.
B. Bob is earning more in real terms than Bill.
C. Bob and Bill are earning the same amount in real terms.
D. Bob and Bill are earning the same amount in nominal terms.
A goal of monetary policy and fiscal policy is to
a. offset the shifts in aggregate demand and thereby eliminate unemployment. b. offset shifts in aggregate demand and thereby stabilize the economy. c. enhance the shifts in aggregate demand and thereby create fluctuations in output and employment. d. enhance the shifts in aggregate demand and thereby increase economic growth