Whether to Use a Single Item or a Measure Made

question 30

Multiple Choice

Whether to use a single item or a measure made up from responses to several items depends on all of the following characteristics of the phenomenon EXCEPT for

• A) The complexity of the phenomenon measured
• B) The level of abstraction of the phenomenon
• C) The number of dimensions of the phenomenon
• D) The use of the phenomenon in marketing

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Definitions:

Economic Profits

The surplus remaining after deducting all costs, including opportunity costs, from total revenues, indicating the financial performance exceeding the break-even point.

Implicit Costs

The opportunity costs that arise from using resources owned by the firm for its own production instead of earning revenue from these resources elsewhere.

Normal Profit

The lowest amount of profit a company must earn to stay competitive and cover its opportunity costs.

Implicit Costs

Implicit costs, also known as imputed or opportunity costs, are the costs of resources owned by the firm that are used in its own production process.