Micro 3.4-Types of Profit MCQ Open Practice
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Last updated 3 months ago
10 questions
This formative assessment aims to test students' understanding of different types of profit in a microeconomic context, using real-world scenarios to deepen comprehension.
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1
What is accounting profit?
What is accounting profit?
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In a competitive market, firms often earn what type of profit in the long run?
In a competitive market, firms often earn what type of profit in the long run?
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1
What is economic profit?
What is economic profit?
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1
Which of the following best describes normal profit?
Which of the following best describes normal profit?
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1
Why might a firm earn zero economic profit?
Why might a firm earn zero economic profit?
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What happens to economic profit when a new competitor enters the market?
What happens to economic profit when a new competitor enters the market?
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1
Which condition reflects a firm experiencing economic losses?
Which condition reflects a firm experiencing economic losses?
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Real-world accounting profits may not represent what aspect of profitability?
Real-world accounting profits may not represent what aspect of profitability?
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1
What is the implication of a firm earning only normal profit?
What is the implication of a firm earning only normal profit?
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If a company’s accounting profit is positive, what does that imply?
If a company’s accounting profit is positive, what does that imply?