Any business wanting to attract financial capital must expect to
A) earn a positive economic profit.
B) keep implicit costs as close to zero as possible.
C) pay a normal rate of return.
D) pay a below normal rate of return in order to make a positive rate of return itself.
Answer: C
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The price elasticity of demand
a. is of no use to producers b. tells producers what will happen to total profit if they change product price c. tells producers what will happen to quantity supplied if they change product price d. tells producers what will happen to total revenue if they change product price e. tells producers what will happen to price in the following time period
The cross elasticity between two goods is 2.5 . These goods are
a. perfect complements b. imperfect complements c. unrelated d. substitutes e. inferior
Computers and software programs are
a. inferior goods b. complementary goods c. goods with a cross-price elasticity of demand of 0 d. substitute goods e. perfectly elastic goods
Fiscal stimulus is:
A. An increase or decrease in government spending. B. An increase in government spending or a decrease in taxes. C. Achieved when government dollars are spent on consumer goods but not on military goods. D. The difference between equilibrium output and full-employment output.