Key influences on the valuation of economic profits include ________.
A)the average level of the prices of goods and services sold
B)the rental price of capital
C)the wage rate
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

All of the above factors can influence the valuation of economic profits. The average level of prices will affect revenue, the rental price of capital will affect expenses, and the wage rate will affect labor costs. Therefore, all three factors must be considered when valuing economic profits.

Key Influences on the Valuation of Economic Profits Include ________