If the Return on Capital Is Less Than the Cost

question 37

Multiple Choice

If the return on capital is less than the cost of capital

• A)economic profits are zero.
• B)accounting profits are zero.
• C)then accounting profits minus economic profit are zero.
• D)economic profits are negative.

---

Definitions:

Criterion Variable

The dependent variable that is predicted or explained by independent variables in a study.

Dependent Variable

The variable in an experiment that is expected to change as a result of manipulations made to the independent variable.

Predictor Variable

A variable that is used in statistical models to predict the outcome of a response variable.

Correlations

A statistical measure that indicates the extent to which two or more variables fluctuate together, showing the strength and direction of a relationship between them.