If a Firm Earns Normal Profit, Then It Has Generated

question 184

Multiple Choice

If a firm earns normal profit, then it has generated revenues

• A)equal to the sum of implicit and explicit costs.
• B)greater than total opportunity costs.
• C)sufficient to cover explicit costs, but not implicit costs.
• D)sufficient to cover implicit costs, but not explicit costs.

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Definitions:

Aggregation Of Demand

Combining multiple demands for goods or services to gain efficiencies or insights, often used in forecasting or capacity planning.

Inventory Requirements

The specific amount of stock needed to meet customer demand while minimizing holding costs.

Continuous Review

An inventory management approach where stock levels are constantly monitored and replenished in real-time, often automated.

Lead Time

is the total time required to manufacture an order and deliver it to the customer, encompassing all phases from order placement to final delivery.