Normal profits include

Question 28 options:

What a business owner could have earned elsewhere

Compensation for the use of an owner's time and money

The sum of hidden opportunity costs

All of the above

Which of the following is a "red light" signaling that a business owner should probably leave an industry?

Question 29 options:

Rising demand

Economic profits

Rising prices

Economic losses

If you borrow money from the bank to start up a business, the interest to pay the bank is

Question 30 options:

Not included in the calculation of accounting profits

An explicit cost

Not subtracted from revenues

None of the above

Success should be measured by

Question 31 options:

Costs

Revenues

Economic profits

Accounting profits

All of the following, except one, are explicit costs. Which is the exception?

Question 32 options:

The cost of raw materials from suppliers

The monthly telephone bill

The salary the owner could have earned working for another employer

The payment of bank interest

Which is another way of saying "hidden opportunity costs"?

Question 33 options:

Direct costs

Explicit costs

Implicit costs

Obvious costs

Which of the following is true concerning economic profits?

Question 34 options:

They are equal to profits as measured by an accountant

They are revenue over and above all costs, including implicit costs

They are always zero

They are always positive