Which of the Following Statements Is Correct

question 42

Multiple Choice

Which of the following statements is correct?

• A)Economic profit is the difference between total revenue and the full opportunity cost of all the resources used in production.
• B)Economic profit is the difference between total revenue and explicit costs.
• C)Economic profit is generally greater than accounting profit.
• D)Economic profit is the difference between total revenue and implicit costs.

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Definitions:

Locational Fits

Types of fits defined by standard tolerances that determine how tightly or loosely two parts will connect, particularly regarding their location accuracy.

Mating Parts

Mating parts refer to components designed to fit together within an assembly, requiring precise manufacturing to ensure correct fit and function.

Clearance

The intentional gap or space between two parts or components to ensure they do not interfere with each other, allowing for free movement or assembly.

Mating Parts

Components designed to fit with other parts through various means such as interference fit, sliding fit, or threaded connections.