Economic Profit of a Decision in Question Equals

question 30

Multiple Choice

Economic profit of a decision in question equals

• A)accounting profit of the decision in question + its opportunity cost.
• B)accounting profit of the decision in question − accounting profit of the best available alternative.
• C)accounting profit of the decision in question + its opportunity cost + overheads.
• D)its opportunity cost + accounting profit of the best available alternative.

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Definitions:

Distrains

The act of legally seizing someone's property as a way to secure the payment of debts or obligations.

Nuisance

An act, condition, or thing that is annoying, inconvenient, or causes damage to legal rights.

Injunction

An equitable remedy of the court that orders the person or persons named therein to refrain from doing certain acts.

Yearly Periodic Lease

A lease agreement that automatically renews each year unless terminated by either party.