The Difference Between a Firm's Total Revenue and Its Total

question 111

Multiple Choice

The difference between a firm's total revenue and its total opportunity cost is the firm's

• A) normal profit.
• B) marginal profit.
• C) marginal revenue.
• D) economic profit.

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Definitions:

Pure Play

A company that focuses on a single type of product or service, without diversification into other areas.

Subjective Approaches

Methods based on personal opinions, interpretations, points of view, or judgments rather than on objective or external data.

WACC

Weighted Average Cost of Capital, a calculation that reflects the average rate that a company is expected to pay its security holders to finance its assets.

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a dataset, assigning weights accordingly.