A Normal Profit May Be Defined as

question 105

Multiple Choice

A normal profit may be defined as

• A)the minimum amount of profit required to keep a business operating in the long run.
• B)an accounting profit equal to the sum of all opportunity costs.
• C)the maximum amount of profit that a business has ever made.
• D)economic profit that is equal to accounting profit.
• E)accounting profit equal to zero.

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Definitions:

Optimal Extraction

The most efficient rate at which a non-renewable resource should be consumed or used, taking into account sustainability and future value.

Nonrenewable Resource

A natural resource that cannot be readily replaced by natural means on a level quick enough to keep up with consumption.

Market Price

The current price at which an asset or service can be bought or sold, determined by the supply and demand dynamics in the open market.

Conservation

The careful management and preservation of natural resources to prevent waste, degradation, or loss.