Economic Profit Is the Difference Between Total Revenue and

question 98

Multiple Choice

Economic profit is the difference between total revenue and

• A) the cost of resources bought in markets.
• B) opportunity costs of production.
• C) interest costs of production.
• D) the normal profit.

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Definitions:

Sales Dollars

A measurement of revenue generated from the sale of goods or services, expressed in monetary units.

Net Operating Income

The total profit of a company after operating expenses are deducted from operating revenues, but before interest and taxes are deducted.

Divisional Segment Margin

The profit or loss generated by a specific division or segment of a business, highlighting its financial performance independently.

Net Operating Income

Earnings from a firm's principal operations, not including interest and tax deductions.