The Difference Between the Sales Price and the Purchase Price

question 22

Multiple Choice

The difference between the sales price and the purchase price of an investment asset is called

• A)capital gain/loss.
• B)total assets.
• C)net worth.
• D)liability.

---

Definitions:

Average Total Cost Curve

The graphical representation showing the relationship between the total cost per unit of output produced and the quantity of output.

Monopolistic Competition

An economic framework where numerous companies offer products that are alike but not exactly the same, granting them a certain level of control over the market.

Long Run

In economics, this refers to a period in which all factors of production and costs are variable, allowing full adjustment to changes.

Economic Profits

The disparity between a company's overall income and its combined direct and indirect expenses.