Economic Profit Is a Better Indicator of a Firm's Performance

question 38

True/False

Economic profit is a better indicator of a firm's performance than accounting profit because economic profit takes account of the normal,expected return to capital.

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Definitions:

Psychological Reactance

Phenomenon occurring when a person reacts to a negative message by asserting freedom in some other arena.

Credibility

Refers to the quality of being trusted and believed in.

Factual and Reliable

Information that is based on facts and can be trusted or depended upon due to its accuracy.

Direct Requests

Communications that plainly state what is being asked or required, without ambiguity or the use of indirect language.