Which of the Following Is True of Profits and Losses

question 51

Multiple Choice

Which of the following is true of profits and losses?

• A) Profits direct entrepreneurs toward production of goods that are highly valued relative to their cost, while losses direct them away from wealth-reducing activities.
• B) Profits indicate that the firm is charging prices that are too high, while losses indicate that the firm needs to raise its prices.
• C) Profits indicate that the consumer is getting a bad deal, while losses indicate that the consumer values the product highly relative to its cost.
• D) Profits indicate that the suppliers of resources are underpaid, while losses indicate they are overpaid.

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Definitions:

Postbox Rule

A legal doctrine stating that an offer is considered accepted once the acceptance is posted, not when the offeror receives it.

Communicate by Mail

The process of sending messages or information through postal services.

Specified Period

A set timeframe or duration that is explicitly stated or agreed upon.

Revoke Offer

The withdrawal of an offer by the offeror before it is accepted by the offeree, rendering the offer void.