Normal profit is:
A. the average profitability of an industry over the preceding 10 years.
B. determined by subtracting explicit costs from total revenue.
C. the return to the entrepreneur when economic profits are zero.
D. determined by subtracting implicit costs from total revenue.
Answer: C
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Once the federal funds rate hits zero, a central bank seeking to stimulate its economy further must turn to unconventional monetary policies.
Answer the following statement true (T) or false (F)
If a marginal cost pricing rule is imposed on the firm in the figure above, the firm will produce
A) 5 units. B) 20 units. C) 30 units. D) 40 units.
FICA is an example of a payroll tax, which is a tax on the wages that firms pay their workers
a. True b. False Indicate whether the statement is true or false
All else equal, a decrease in the rate of inflation ________ planned spending and ________ short-run equilibrium output.
A. decreases; decreases B. increases; decreases C. decreases; increases D. increases; increases