The value of income received by a firm in return for supplying goods and services is called
A) economic rent.
B) revenue.
C) accounting profit.
D) economic profit.
E) normal profit.

Question

Quizplus · Accepted Answer

Revenue is the income a firm receives from selling its goods and services. Economic rent is a payment for a factor of production in excess of what is necessary to keep that factor in its current use. Accounting profit is the difference between total revenue and explicit costs, while economic profit is the difference between total revenue and both explicit and implicit costs. Normal profit is the minimum amount of profit necessary for a firm to stay in business. Therefore, the best choice for the value of income received by a firm in return for supplying goods and services is revenue (B).

The Value of Income Received by a Firm in Return