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Formulate a measured operational definition for each dependent variable in question 2.
Total Cost
The costs, both explicit and implicit, of all the resources used by the firm. Total cost includes a normal rate of return for the firm’s equity capital.
Profitable
A financial status indicating that revenues exceed the costs and expenses associated with operating a business.
Profit-Maximizing Level
The output level at which a firm achieves the highest possible profit, where marginal cost equals marginal revenue.
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