Accounting Profit Does Not Include

question 49

Multiple Choice

Accounting profit does not include:

• A)explicit cost.
• B)sunk cost.
• C)fixed cost.
• D)opportunity cost.
• E)variable cost.

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Definitions:

Equilibrium Price

A price level where the demand for a product matches the supply, ensuring that every buyer finds a seller and vice versa, leading to market stability.

Temporary Surplus

A situation where the supply of a product exceeds its demand for a short period of time.

Usury Laws

Usury laws are regulations governing the amount of interest that can be charged on loans, aimed at preventing exorbitant or unfair interest rates.

Price Ceiling

A government-imposed limit on how high a price can be charged for a product, service, or commodity to protect consumers from rapid price increases.