Find the correct matching of the items of List – I with the items of List – II given below : List –…
Matching the profit concepts: (a) Normal Profit is earned when (II) Total revenue equals total economic cost (explicit plus implicit costs); (b) Economic profit (supernormal…
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Find the correct matching of the items of List – I with the items of List – II given below :
| List – I | List – II |
|---|---|
| (a) Normal Profit | (I) Excess of total revenue over total explicit cost |
| (b) Economic profit | (II) Total revenue equals total economic cost |
| (c) Accounting profit | (III) Excess of total revenue over total of explicit and implicit costs and a normal rate of return |
Answer and explanation
Correct answer A
Matching the profit concepts: (a) Normal Profit is earned when (II) Total revenue equals total economic cost (explicit plus implicit costs); (b) Economic profit (supernormal profit) is the (III) Excess of total revenue over total of explicit and implicit costs and a normal rate of return; and (c) Accounting profit is the (I) Excess of total revenue over total explicit cost. Thus, '(I)-(c), (II)-(a), (III)-(b)' is correct.
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UGC NET Commerce