Abnormal Profit Occurs When

question 15

Multiple Choice

Abnormal profit occurs when:

• A) Price is greater than average cost.
• B) Price is greater than average variable cost.
• C) Price is greater than marginal cost.
• D) Price is greater than average fixed cost.

---

Definitions:

Job Ranking Method

A simple evaluation system where jobs are ranked in order based on their perceived value or complexity.

Point System

A method used to track, measure, or assign value to certain actions, behaviors, or outcomes, often used in performance evaluation or reward programs.

Lag Strategy

A business approach where a company chooses to delay action or innovation, often to observe competitors' performance or reduce risk.

Compensation Philosophies

The underlying beliefs and principles that guide how an organization values and rewards its employees' contributions and efforts.