Firms

question 163

Multiple Choice

Firms

• A)are where entrepreneurs combine resources
• B)are economic units formed by profit-seeking entrepreneurs
• C)are assumed to try to maximize profit
• D)reward entrepreneurs with profits, which are sales revenue minus the cost of production
• E)All of the answers are correct.

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Definitions:

Coaxial Cable

Insulated copper wire; used to carry high-speed data traffic and television signals.

Cable

A medium used for transmitting electrical power or signals, consisting of one or more wires enclosed in a protective sheath.

DSL

Stands for Digital Subscriber Line, a technology for bringing high-bandwidth information to homes and small businesses over ordinary copper telephone lines.

LAN

A Local Area Network (LAN) is a computer network that interconnects computers within a limited area such as a residence, school, laboratory, or office building.