Real Assets Are Not Acquired When

question 91

Multiple Choice

Real assets are not acquired when

• A)durable goods are purchased.
• B)a house is bought.
• C)nondurable consumer goods are purchased.
• D)an automobile is purchased for transportation.

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Definitions:

Economic Profits

The difference between total revenue and total costs, including both explicit and implicit costs, representing the additional amount earned beyond the next best alternative.

Economies of Scale

Cost advantages that a business can achieve by increasing the scale of production, leading to a lower cost per unit of output.

Economic Profit

The difference between a firm’s total revenue and its total costs, including both explicit and implicit costs.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision or choice.