Multiple Choice
If economic profits are zero
A) accounting profits is less than the cost of capital.
B) accounting profit is just covering the cost of capital.
C) the cost of capital is negative.
D) the entrepreneur should go to his/her next best alternative.
Correct Answer:

Verified
Correct Answer:
Verified
Q5: It is always the best strategy to<br>A)not
Q6: Markets provide<br>A)information.<br>B)prices.<br>C)incentives.<br>D)all of these choices.
Q7: Economic Profit equals accounting profit plus the
Q8: To Schumpeter, the market process is called<br>A)dynamic
Q9: Entrepreneurs reveal<br>A)things that the market knew.<br>B)things that
Q11: The _ is at the center of
Q12: If accounting profits are positive then economic
Q13: The market process is<br>A)governmental.<br>B)institutional.<br>C)dynamic.<br>D)all of these choices.
Q14: A bond is a form of<br>A)dividend.<br>B)debt.<br>C)equity.<br>D)stock.
Q15: Entrepreneurs seek accounting profit.