If PetsCom Is Earning a Rate of Return Less Than Necessary

question 243

Multiple Choice

If Pets.com is earning a rate of return less than necessary for the business to continue operations, then

• A) total revenue exceeds economic costs.
• B) economic costs exceed total revenue.
• C) normal profit is zero.
• D) economic profit is zero.

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Definitions:

General Duty Clause

A provision in the Occupational Safety and Health Act requiring employers to provide a work environment free from recognized hazards that can cause death or serious physical harm.

Hazardous Fumes

Dangerous gases or vapors produced during various processes, which can pose health risks or environmental hazards if inhaled or released.

Industrial Cleaning

The process of cleaning hazardous areas in industrial facilities such as factories, warehouses, and power plants, often involving the removal of pollutants or contaminants.

Organizational Objectives

The defined goals and aspirations that a company or entity aims to achieve through its operations and strategies.