From society's point of view, the economic function of profits and losses is to:

A. promote the equal distribution of real assets and wealth.
B. achieve full employment and price level stability.
C. contribute to a more equal distribution of income.
D. reallocate resources from less desired to more desired uses.

Answer: D

Economics

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The average return for supplying entrepreneurial ability is the entrepreneur's

A) accounting profit. B) normal profit. C) explicit profit. D) economic profit.

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A coalition of firms who agree to restrict output for the purpose of earning an economic profit is called a(n):

A. pure monopoly. B. duopoly. C. cartel. D. oligopoly.

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