A Firm in the Finance Industry Should Do Which of the Following

question 34

Multiple Choice

A firm in the finance industry should do which of the following to ensure that it stays current with technology?

• A)Select only low-cost,low risk projects
• B)Limit work to those projects with great rewards
• C)Select only low-risk,high-reward projects
• D)Have a few high-risk,high-benefit projects
• E)Avoid projects that are very costly

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Definitions:

Total Revenue

Total Revenue is the entire amount of money earned by a firm from the sale of its goods or services before any costs or expenses are deducted.

Purely Competitive Firm

A business that operates in a market where there are many sellers and buyers, the product is homogeneous, and there is free entry and exit from the market.

Units of Output

The quantity of goods or services produced by a company, industry, or economy within a specific period.

Marginal Revenues

The extra earnings accrued by selling an additional unit of a good or service.