Which of the Following Is the Formula Used for Computing

question 101

Multiple Choice

Which of the following is the formula used for computing economic profits?

• A) economic profits = total revenue - implicit costs
• B) economic profits = total revenue - (implicit costs + explicit costs)
• C) economic profits = total costs - total revenue
• D) economic profits = total revenue - explicit costs

Recognize legislation aimed at protecting consumers and preventing the sale of dangerous products.

Distinguish between green marketing, social marketing, and corporate giving.

Understand the discrepancy between consumer attitudes towards ethical products and their actual purchasing behavior.

Recognize the importance of corporate actions in enhancing social and environmental impacts.

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Definitions:

Contribution Margin

The amount of revenue from sales that exceeds variable costs, providing a measure of the ability of a company to cover its fixed costs and contribute to profit.

Break-even Point

The point at which total costs and total revenue are equal, resulting in no net loss or gain.

Washburn Guitars

A well-known American manufacturer and importer of guitars, mandolins, and other string instruments with a history dating back to the 19th century.

Batch-custom Instruments

Tools or devices that are customized in small series to meet specific requirements of a customer or market niche.