Which of the Following Statements Is True

question 112

Multiple Choice

Which of the following statements is true?

• A)Explicit costs always equal implicit costs.
• B)Zero economic profit is a smaller dollar figure than normal profit.
• C)Zero economic profit is a larger dollar figure than normal profit.
• D)Saying that a firm earned zero economic profit is the same as saying it earned normal profit.
• E)none of the above

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Definitions:

Wage Rate

Wage rate is the amount of money paid to workers for their labor, per unit of time, reflecting compensation for employment.

Interest Rate

The percentage charged on a loan or paid on savings over a period, typically expressed as an annual percentage of the principal.

Urban Land

Areas of land characterized by higher population density and vast human features in comparison to areas surrounding it, often dedicated to commercial, residential, and infrastructure use.

Fixed

Something that is constant or unchangeable over a certain period of time, such as a fixed interest rate.