Match the items of List-I with the items of List-II and select the correct answer. List-IList-II (a)…
Economic profit equals Total Revenue minus Total Cost (both explicit and implicit costs) [(a)-(iii)]; Accounting profit equals Total Revenue minus Explicit Cost [(b)-(i)];…
Choose your answer
Match the items of List-I with the items of List-II and select the correct answer.
| List-I | List-II |
|---|---|
| (a) Economic profit | (i) Total Revenue - Explicit cost |
| (b) Accounting profit | (ii) Buyers and Sellers exchanging |
| (c) Collusion/ Cartel | (iii) Total Revenue – Total cost |
| (d) Market | (iv) Oligopoly |
Answer and explanation
Correct answer A
Economic profit equals Total Revenue minus Total Cost (both explicit and implicit costs) [(a)-(iii)]; Accounting profit equals Total Revenue minus Explicit Cost [(b)-(i)]; Collusion or Cartel formation is a characteristic behaviour of firms in an Oligopoly market [(c)-(iv)]; and a Market is an institutional arrangement where buyers and sellers exchange goods and services [(d)-(ii)]. Thus, the correct code is (a)-(iii), (b)-(i), (c)-(iv), (d)-(ii).
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UGC NET Commerce