If Total Revenue Is Less Than Total Costs, Then

question 111

Multiple Choice

If total revenue is less than total costs, then

• A)economic profits are positive.
• B)economic profits are zero.
• C)economic profits are negative.
• D)a firm breaks even.
• E)profits can be positive or negative, depending on other factors.

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Definitions:

Dampening Scenario

A situation where fluctuations in demand or supply are reduced or stabilized to minimize the impact on operations or planning.

Bullwhip Measure

A metric that quantifies the increase in variability or fluctuations in order and inventory levels observed as one moves up the supply chain from retailers towards manufacturers.

Supply Chain

The network of manufacturers, suppliers, and logistics providers involved in producing and delivering a product to the end user.

Variance

A statistical measure of the dispersion showing how much the values in a data set diverge from the mean or expected value.