Total Revenue Minus Only Implicit Costs Is Called

question 286

Multiple Choice

Total revenue minus only implicit costs is called

• A)accounting profit.
• B)economic profit.
• C)opportunity cost.
• D)None of the above is correct.

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Definitions:

Long-term Real Rate

The interest rate on a long-term loan or investment, adjusted for the effects of inflation, reflecting the real cost of borrowing or the real yield on an investment.

Bonds

Fixed-income securities where an investor loans money to an entity (corporate or sovereign) which borrows the funds for a defined period of time at a variable or fixed interest rate.

Average Rate Of Return

A measure of the profitability of an investment, calculated by dividing the average annual profit by the initial investment cost.

Riskiness

The measure of uncertainty or potential for loss in an investment or economic activity.