A Firm That Is Earning Positive Profits in the Short

question 246

Multiple Choice

A firm that is earning positive profits in the short run has an incentive to ________ its scale of operation in the long run.

• A) expand
• B) contract
• C) not change
• D) encourage another firm to expand

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Definitions:

Pro Rata Basis

A method of allocating amounts or resources proportionally, according to a specific rate, percentage, or share.

Titled To

The legal right to own, possess, or hold a particular property or position.

Accounting Firm

A business specialized in providing professional services related to accounting, including auditing, tax preparation, and financial consulting.

Accounting Business

An enterprise that provides financial services such as bookkeeping, tax preparation, and financial auditing to individuals or other businesses.