Water from the Murray River Is an Example of

question 25

Multiple Choice

Water from the Murray River is an example of

• A) capital.
• B) a nonrenewable natural resource.
• C) a renewable natural resource.
• D) a static resource.

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Definitions:

Economic Profit

The differential tally between gross receipts and total obligations, including costs both acknowledged and undeclared.

Average Variable Cost

The total variable cost per unit of output, calculated by dividing total variable costs by the quantity of output.

MR = MC

Marginal Revenue equals Marginal Cost; a condition used to determine the profit-maximizing level of output for a firm.

Profit-maximizing Quantity

The level of output at which a business realizes the greatest profit, where marginal cost equals marginal revenue.