Which of the Following Is a Microeconomic Topic? I

question 51

Multiple Choice

Which of the following is a microeconomic topic? i. K-Mart's decision to close stores that are not making a profit.
Ii) Bunning's choice to hire more full-time employees because its sales increased.
Iii) Virgin Airlines changes its fares.

• A) i only
• B) i and iii
• C) ii and iii
• D) i, ii, and iii
• E) i and ii only

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Definitions:

Profit Center

A branch or division of a company that is directly responsible for generating its own revenue and profits.

Fixed Assets

Long-term tangible assets, such as buildings, machinery, and equipment, used in the operation of a business and not expected to be consumed or converted into cash in the short term.

Profit Center Income Statement

A financial report that details the revenues, costs, and profits of a distinct unit within a company, focusing on its financial performance.

Controllable Revenues

Revenues earned by a profit center.