Which of the Following Statements Is Correct Regarding Normal Profits

question 79

Multiple Choice

Which of the following statements is correct regarding normal profits?

• A)They are calculated by subtracting explicit costs from total revenue.
• B)Earning normal profits is considered a necessary part of doing business.
• C)They would always be smaller than economic profits.
• D)They are what is left over after economic profits are covered.

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Definitions:

Scatterplots

A type of plot or graphical representation used to display and assess the relationship between two quantitative variables.

Cubic Relationships

Refers to relationships between variables where one variable changes in proportion to the cube of another.

Quadratic

Pertaining to an equation, function, or term of the second degree, usually taking the form ax^2 + bx + c where a, b, and c are constants.

Direction

The course along which someone or something moves, points, or faces.