It Would Be Acceptable to Have the Selling Price of a Product

question 30

Multiple Choice

It would be acceptable to have the selling price of a product just above the variable costs and expenses of making and selling it in

• A)the long run
• B)the short run
• C)both the short and long run
• D)neither the short nor the long run

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Definitions:

Own Capital

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

Long-Run

A period of time in which all factors of production and costs are variable, allowing for complete adjustment to change.

Market Entry

The process by which a company or business begins to participate in a new market, facing existing competitors and regulations.

Normal Return

The minimum profit necessary for a company to remain viable in its industry, often considered the opportunity cost of capital.