With the Total Cost and Total Revenue Curves, We Measure

question 24

Multiple Choice

With the total cost and total revenue curves, we measure economic profit by the ________ between the two curves.With the per-unit curves, we measure economic profit by a(n) _______.

• A)vertical distance, horizontal distance
• B)vertical distance, area
• C)area, area
• D)area, vertical distance
• E)horizontal distance, area

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Definitions:

Losing Money

The result of an investment or business activity where expenses and losses exceed revenues or gains.

Profitable

Being profitable means that a company or business generates more revenue than the costs involved in its operation, resulting in a positive financial gain.

Friendly Merger

A merger agreed upon by all parties involved, where the companies willingly combine due to perceived mutual benefits.

Hostile Merger

A takeover attempt that is made against the wishes of the target company's management and board of directors.