If Microsoft Is Earning a Rate of Return Greater Than

question 226

Multiple Choice

If Microsoft is earning a rate of return greater than the return necessary for the business to continue operations in the long run, then

• A) total costs exceed total revenue.
• B) total costs exceed a normal rate of return.
• C) the normal rate of return is zero.
• D) the firm is earning an economic profit.

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Definitions:

Left Ventricle

The chamber of the heart that receives oxygenated blood from the left atrium and pumps it out through the aorta to circulate oxygen-rich blood throughout the body.

Aorta

The largest artery in the body, which carries oxygen-rich blood from the left ventricle of the heart to various parts of the body.

Pulmonary Arteries

The blood vessels that transport blood lacking oxygen from the heart to the lungs to be oxygenated.

Right Atrium

The right upper chamber of the heart that receives deoxygenated blood from the body through the vena cava and pumps it into the right ventricle.