Explanations for Abnormal Behaviour Depend on Various Factors

question 70

Essay

Explanations for abnormal behaviour depend on various factors. Use several examples and describe some reasons why certain behaviours are or are not considered "abnormal."

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Definitions:

Normal Rate Of Return

A rate of return on capital that is just sufficient to keep owners and investors satisfied. For relatively risk-free firms, it should be nearly the same as the interest rate on risk-free government bonds.

Economic Loss

A situation where the cost of making a product is greater than the revenue gained from selling it, resulting in a negative economic outcome.

Normal Rate Of Return

The average expected or required return on an investment or project, reflecting the usual profit level for the market or industry.

Last Dollar Spent

The concept referring to the allocation of the final unit of currency in an economic decision-making process.