A Payment for the Use of Any Resource Over and Above

question 275

Multiple Choice

A payment for the use of any resource over and above its opportunity cost is called

• A) accounting profit.
• B) economic profit.
• C) normal cost.
• D) economic rent.

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Definitions:

Financial Objectives

Specific, measurable goals set by a business to enhance its financial performance.

Customer Behaviors

The behaviors exhibited by customers in the marketplace, including purchasing decisions, usage patterns, and disposal activities.

Capacity Utilization

The extent to which a firm or economy is using its installed productive capacity.

Rationalization

The process of reorganizing a company or system to make it more efficient and effective, often involving reductions in staff.