The Difference Between a Firm's Total Revenue and What Must

question 20

Multiple Choice

The difference between a firm's total revenue and what must be paid to attract resources from their best alternative use is called

• A)total revenue
• B)utility
• C)economic profit
• D)cost
• E)production efficiency

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Definitions:

Budget Constraint

A limitation on the consumption choices of individuals or households, based on their income and the prices of goods and services.

Income

Income is the amount of money or goods received, typically within a certain period, in exchange for labor, goods sold, or investment.

Nuts

Edible seeds enclosed in a hard shell, often high in fat, protein, and other nutrients, and consumed worldwide as snacks or ingredients.

Berries

Small, juicy fruits that are often safe to eat, known for their rounded form, bright colors, and flavors that vary from sweet to tangy.