Ch. 3 Froeb Flashcards
1
Q
opportunity cost
A
many options and figure out what is the best option
2
Q
explicit costs
A
measurable costs - trade in hand - expenses.
3
Q
Accounting Profit
A
total revenues MINUS explicit or measurable Cost
4
Q
economic profit
A
total revenues MINUS total cost
this total cost is both explicit and implicit
5
Q
economic profit is negative
A
made wrong choice
6
Q
economic profit is positive
A
you made the wrong choice
