If a Company Is Earning a Rate of Return Less

question 188

Multiple Choice

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

• A) total revenue exceeds total costs.
• B) total costs are less than a normal rate of return.
• C) the firm's normal rate of return is zero.
• D) the firm is suffering an economic loss.

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Definitions:

Area Model

An area model is a visual representation that uses rectangles to depict the multiplication of large numbers or algebraic expressions, aiding in the understanding of complex concepts.

Common Binomial Factor

A binomial that is a factor common to two or more polynomials.

Negative Real Number

A real number that is less than zero.

Standard Form

In mathematics, a way to write numbers using the digits 0-9, with each digit having a place value. In algebra, a standard form of an equation might be ax + by = c.