Match the Following Profit Measures to Their Definitions

question 32

Multiple Choice

Match the following profit measures to their definitions.
-Net profit.

• A) A comparative indicator of profit in relation to sales value.
• B) Gross profit less all operating expenses but not interest and taxes.
• C) A measure of company performance after deducting operating expenses and interest but not taxes.
• D) A simple measure of profit obtained from the sale of goods and services. Also referred to as sales profit.

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Definitions:

Price Elasticity

A measure indicating the degree to which product demand is affected by price shifts.

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a given price over a specified period.

Price Increase

A Price Increase refers to a rise in the cost of goods or services that can occur due to various factors like inflation, increased production costs, or higher demand.

Immediate Market Period

A very short time frame in economics during which the supply of a good is completely fixed and cannot respond to changes in demand.