If a Purely Competitive Constant-Cost Industry Is Realizing Economic Profits

question 78

Multiple Choice

If a purely competitive constant-cost industry is realizing economic profits, we can expect industry supply to

• A)increase, output to increase, price to decrease, and profits to decrease.
• B)increase, output to increase, price to increase, and profits to decrease.
• C)decrease, output to decrease, price to increase, and profits to increase.
• D)increase, output to decrease, price to decrease, and profits to decrease.

Differentiate between effective and ineffective approaches in soliciting action in sales messages.

Understand the use of personalization and originality in capturing the audience's attention.

Understand the elements and effectiveness of persuasive messaging in business communications.

Learn the strategies for crafting sales messages, including guarantees, enclosures, and central selling features.

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Definitions:

Turnover

The total revenues or sales achieved by a company in a specified period, or the rate at which inventory is sold and replaced.

Average Operating Assets

A metric calculated as the average value of the assets involved in generating operating income over a specific period.

Net Operating Income

A measure of a company's profitability from its regular business operations, excluding deductions of interest and taxes.

Gross Margin

The difference between revenue and cost of goods sold, used to cover other expenses and profits.