An Auto Travels Down a Straight, Level Road at Constant

question 50

Multiple Choice

An auto travels down a straight, level road at constant speed. One force that acts on the auto is

• A) gravity pushing upward on the auto.
• B) the road pushing upward on the auto.
• C) the auto pushing downward on the road.
• D) the road pulling downward on the auto.
• E) None of the above.

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Definitions:

Normal Return

The minimum profit necessary to keep a company in business, equating to the opportunity cost of capital.

Own Capital

The funds or assets personally invested by the owners into a business, distinct from borrowed capital.

Economic Profit

The separation between full-scale income and aggregated expenses, acknowledging both straightforward and underlying costs.

Own Capital

The personal wealth or assets invested in a business by its owners.