If a Firm Has Implicit Costs as Well as Explicit

question 264

Multiple Choice

If a firm has implicit costs as well as explicit costs

• A)accounting profit might be greater than economic profit.
• B)economic profit will always be greater than accounting profit.
• C)accounting profit will be equal to economic profit.
• D)the firm has no economic profit.

Understand the jurisdiction and binding authority of court decisions across different courts and states.

Grasp the foundational principles of the U.S. Constitution and its impact on law.

Appreciate the significance of law in regulating social order and ensuring predictability in commercial relationships.

Distinguish between case law and statutory law.

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Definitions:

Customer Satisfaction

An evaluation of the degree to which a company's products or services exceed or fulfill customer expectations.

Return On Sales

A financial ratio that measures the percentage of profit made from sales after covering operating expenses.

Expectancy Theory

A motivational theory suggesting that an individual's motivation depends on their expectation of the outcome and the value they place on that outcome.

Valence

In psychology, the extent to which a person values the expected outcome of an action; in chemistry, the combining power of an element.