In the Reservoir Analogy for Stock Versus Flow, the Stock

question 92

Multiple Choice

In the reservoir analogy for stock versus flow, the stock of capital is similar to the:

• A) Quality of water
• B) Outflow of water
• C) Inflow of water
• D) Level of water

---

Definitions:

Minimum

The lowest point on a nonlinear curve, where the slope changes from negative to positive.

Economic Profit

The difference between the total revenue received by a business and the total implicit and explicit costs of a business.

ATC

Average Total Cost, which is the sum of all production costs divided by the quantity of output produced.

Economic Profits

Profits exceeding the opportunity costs of a company; considered an indicator of efficiency and entrepreneurship.