Businesses Employ Resources in the Production and Sale of a Good

question 87

Essay

Businesses employ resources in the production and sale of a good or service. Accounting profit is typically used as a way of evaluating the success of a business, but economists argue that economic profit is more relevant to determining whether a business should continue to operate. What is the difference between these two measures of profit? Explain why accounting profit is usually greater than economic profit.

---

Definitions:

Situational Variables

These are external factors that affect an individual's behavior in a given context or situation, including environmental conditions and social circumstances.

Cultural Differences

Variations in the norms, values, beliefs, and practices among different cultures or societies.

Intensifiers

Words or phrases used to give emphasis or stress on the degree of an attribute or action in communication.

Powerless Speech

A communication style characterized by hesitations, tag questions, and qualifiers that may indicate a lack of confidence or authority.