Which of the following is true of economic profit?
A) It equals total revenue minus total cost.
B) It excludes implicit cost.
C) It is any profit lower than a normal profit.
D) Firms attempt to maximize accounting profit and are not concerned about economic profit.
E) It is always equal to zero in a perfectly competitive market in the short run.
Correct Answer:
Verified
Q29: Economists assume that firms seek to _
A)maximize
Q30: Firms that ignore the profit maximization strategy
Q31: Table 8.1 Q32: How does a perfectly competitive firm maximize
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