Firms Are Profitable When Price Is

question 212

Multiple Choice

Firms are profitable when price is:

• A) greater than average cost.
• B) equal to average cost.
• C) less than average cost.
• D) zero.

Differentiate between statements of fact (positive statements) and statements of opinion or policy (normative statements).

Apply understanding of economic models to interpret real-world economic activities and policies.

Evaluate the role of government and policy implications in economic statements.

Understand the concept and implications of the production possibility frontier (PPF).

---

Definitions:

Period

A length or portion of time.

Capital Gains Yield

The part of an investment's total return that comes from the increase in its value, not including dividends or interest earnings.

Total Return

The overall gain or loss on an investment over a specific period, including both capital appreciation and dividends or interest, expressed as a percentage.

Dividends

Payments made by a corporation to its shareholders, usually derived from the company's profits.