If Economic Profits Are Zero

question 10

Multiple Choice

If economic profits are zero

• A)accounting profits is less than the cost of capital.
• B)accounting profit is just covering the cost of capital.
• C)the cost of capital is negative.
• D)the entrepreneur should go to his/her next best alternative.

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Definitions:

Oedipus Complex

A Freudian theory in psychoanalytic psychology describing a child's emotions and subconscious sexual desires toward their opposite-sex parent.

Electra Complex

A psychoanalytic theory describing a girl's sense of competition with her mother for the affections of her father.

Psychoanalytic Theory

A comprehensive theory developed by Sigmund Freud that attempts to explain human behavior through unconscious motivations and conflicts.

Freud

Sigmund Freud, an Austrian neurologist and the founder of psychoanalysis, a method for treating psychopathology through dialogue.