If a Firm Earns Normal Profit, Then It Has Generated

question 184

Multiple Choice

If a firm earns normal profit, then it has generated revenues

• A)equal to the sum of implicit and explicit costs.
• B)greater than total opportunity costs.
• C)sufficient to cover explicit costs, but not implicit costs.
• D)sufficient to cover implicit costs, but not explicit costs.

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Definitions:

Bystander Effect

A social psychological phenomenon in which individuals are less likely to offer help to a victim when other people are present, under the assumption that someone else will take action.

Scapegoat Theory

A social psychological concept that suggests individuals or groups are unfairly blamed for problems not of their making.

Mere Exposure Effect

A psychological phenomenon in which repeated exposure to a stimulus increases an individual's preference for that stimulus.

Ingroup Bias

Describes the tendency to favor members of one's own group over those from external groups.