Asked by
Thanyaporn Arnarcha
on Dec 12, 2024Verified
Economic profit provides an incentive for persons investing in human and physical capital to
A) undertake investment projects yielding an uncertain return.
B) discover and develop beneficial (productive) investment opportunities.
C) produce products that increase the value of resources.
D) do all of the above.
Economic Profit
The difference between total revenue and total costs, including both explicit and implicit costs, indicating the financial performance beyond the break-even point.
Human Capital
The collective skills, knowledge, or other intangible assets of individuals that can be used to create economic value.
Physical Capital
Tangible assets used in the production of goods and services, such as machinery and buildings.
- Ascertain the factors that result in economic profit and distinguish it from various other profit categories.
Verified Answer
VB
Learning Objectives
- Ascertain the factors that result in economic profit and distinguish it from various other profit categories.