Economic Profit Is Defined as _____

question 132

Multiple Choice

Economic profit is defined as _____

• A)total fixed cost plus total variable cost.
• B)total revenue minus marginal costs.
• C)average revenue minus average variable cost.
• D)total revenue minus total costs.
• E)marginal revenue minus opportunity costs.

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Definitions:

Convertible Debenture

A type of bond that the holder can convert into a specified number of shares of common stock in the issuing company.

Conversion Value

The monetary value of a convertible security if it is converted into a different asset, usually shares of the issuing company's stock.

Bond Value

This refers to the present value of a bond's future interest payments plus the face value of the bond when it matures, essentially the price at which a bond is traded.

Credit Default Swaps

Financial derivative contracts that transfer the credit exposure of fixed income products between parties, used as a form of insurance against default on loans or bonds.