The motive that drives firms to enter or exit an industry is
A) utility.
B) governmental.
C) economic profit.
D) accounting costs.
C
You might also like to view...
Suppose a supplier has an agreement with a firm to be paid $50,000 in 4 years. If the annual interest rate is 1 percent, the supplier would be indifferent between receiving ________ now and waiting 4 years to receive the $50,000.
A) 49,557.89 B) $48,049.02 C) $49,550.22 D) $48,076.92
If Bank A is unable to find high-quality opportunities to make loans to private borrowers, then it can _____ in order to make some money out of the deposits
a. invest in the mutual funds market b. provide loans to international borrowers c. start a new business of its own d. invest in the securities market
If the slope of a person's utility function for different money prizes is linear, the person
A. is risk averse. B. is indifferent to risk. C. is a risk lover. D. We can't really say
Alejandro Scoobertini owns a store specializing in soccer jerseys. In 2012, he purchased $150,000 worth of jerseys from manufacturers, employed one worker for $40,000, purchased $20,000 worth of supplies from an office supply store, and sold jerseys for
$280,000. Based on this information, what was the value added at Alejandro's store in 2012? A. $70,000. B. $110,000. C. $280,000. D. $490,000.