The Return That an Entrepreneur Can Expect to Earn, on Average

question 139

Multiple Choice

The return that an entrepreneur can expect to earn, on average, is called

• A) profit.
• B) normal profit.
• C) economic profit.
• D) accounting profit.

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Definitions:

Sales

The total revenue generated from the sale of goods or services related to a company's primary operations.

Materials Cost

The total expense incurred from acquiring raw materials used in the manufacture of products.

Break-even Point

The level of production or sales at which costs equal revenues, and there is no profit or loss.

Break-even Point

The point at which total costs equal total revenues, meaning no profit or loss is being made.