A Firm Cannot Control All of the Factors That Allow

question 73

Multiple Choice

A firm cannot control all of the factors that allow it to make economic profits.Which of the following is an example of an uncontrollable factor?

• A)product differentiation
• B)input prices
• C)producing at a lower average total cost than competing firms
• D)hiring competent managers

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Definitions:

Increasing Assets

Refers to the growth or escalation in the value of assets owned by a business or individual.

Accrued Expenses

Costs that have been incurred but not yet paid for, recognized under the accrual basis of accounting.

Accounts Receivable

Money owed to a company by its clients or customers for goods or services delivered but not yet paid for.

Accounts Payable

Money owed by a business to its suppliers shown as a liability on the company’s balance sheet.