- CFA Exams
- CFA Exam: Level I 2021
- Study Session 4. Economics (1)
- Reading 12. Topics in Demand and Supply Analysis
- Subject 5. Economic Cost vs. Accounting Cost
CFA Practice Question
In the economic theory of the firm, profit normally refers to ______.
B. normal profit
C. economic profit
A. accounting profit
B. normal profit
C. economic profit
Correct Answer: C
User Contributed Comments 1
| User | Comment |
|---|---|
| Antoinepo | SInce normal profit occurs when economic profit is at 0, a profit ( higher then 0) means an economic profit. Remember : a NORMAL PROFIT = OPPORTUNITY COST (requiered roe) |