If the Owners of a Business Are Receiving Total Revenue

question 2

Multiple Choice

If the owners of a business are receiving total revenue sufficient to cover all their explicit and implicit costs,they are

• A) earning positive economic profit.
• B) earning a normal profit.
• C) earning economic losses.
• D) doing better than their next-best alternative.
• E) doing worse than their next-best alternative.

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Definitions:

Duplication of Functions

The scenario in which multiple individuals or departments perform the same tasks or activities, often leading to inefficiency within an organization.

Functional Design

The aspect of design focused on optimizing the functionality of a product or system, emphasizing utility over form.

Geographic Design

The planning and creation of spatial arrangements or environments based on geographical principles and data.

Specialized Activities

Activities that require specific skills or expertise, often contributing to the efficiency or quality of output in organizational contexts.