If One Were to Consider a University as a Business

question 103

Multiple Choice

If one were to consider a university as a business, the computers in the computer labs would be regarded by economists as

• A)technology flows.
• B)mechanization flows.
• C)part of the university's stock of capital.
• D)a flow of services from the university's stock of capital.

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Definitions:

Price

The amount of money required to purchase a good or service, often determined by factors such as supply and demand.

Perfectly Competitive Firm

A company that operates in a market where there are many buyers and sellers, the product is homogeneous, and there are no barriers to entry or exit.

Normal Profit

Normal profit occurs when a firm's total revenue is equal to its total costs, including the opportunity costs of capital, providing no incentive for entry or exit in the industry.

Yearly Licensing Fee

An annual charge paid to obtain the rights to use a particular piece of intellectual property, software, or other specific products/services.