A firm's total revenue minus its total opportunity cost is called its
A) accounting profit.
B) normal profit.
C) economic profit.
D) abnormal profit.
E) entrepreneur's profit.
C
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Different firms in a competitive industry will have differing shutdown points when
a. they have different cost curves. b. they are charging different prices. c. they entered the industry at different times. d. they all have identical cost curves.
Supply-side economists argue that taxing of nominal gains and interest earnings during inflationary periods
a. results in an increased effective tax rate on real returns but will not retard saving. b. will retard saving but will not increase the effective tax rate on real returns. c. will increase the effective tax rate on real returns and will retard saving. d. None of the above
If the government should decide to legalize marijuana, all other things remaining the same, we should expect to see
A) a decrease in the price of marijuana. B) an increase in the price of marijuana. C) a decrease in the demand for marijuana. D) an increase in the use of imported versus domestic marijuana.
Points along a budget line represent the maximum combinations of two commodities that a consumer can afford
a. True b. False Indicate whether the statement is true or false