Which of the following is a residual reward that accrues to business decision makers who use resources so as to increase their value?
A) opportunity cost
B) earnings of employees
C) economic profit
D) interest earnings of corporate bondholders

Question

Quizplus · Accepted Answer

Economic profit is the residual reward for business decision makers after accounting for all costs, including opportunity costs, indicating the value added by their decisions.

Which of the Following Is a Residual Reward That Accrues