What Is X-Cel Company's Net Income or Net Loss If

question 73

Multiple Choice

What is X-cel Company's net income or net loss if it had Revenue of $2,200, Salary Expense of $700, Utility Expense of $350, and Withdrawals of $3,000 during October?

• A) $1,850 net income
• B) $1,150 net loss
• C) $1,150 net income
• D) $1,850 net loss

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Definitions:

Product-Variety Externality

External effects that occur when the introduction of new products benefits consumers more than the producers, typically by increasing the variety of goods available.

Business-Stealing Externality

Business-Stealing Externality occurs when a new entrant in a market captures a portion of the incumbent firm's customers, potentially leading to costs not accounted for in the entrant's decisions.

Spillover Benefits

These are benefits experienced by those who are not directly involved in economic transactions or activities; they result from the positive externalities of such transactions.

Advertising

The act of promoting products, services, or brands through various media channels to inform, persuade, and influence purchasing decisions.