If a Firm Goes Out of Business Because of Negative

question 111

Multiple Choice

If a firm goes out of business because of negative economic profits,its books

• A) might indicate a positive accounting profit.
• B) might indicate that opportunity costs were zero.
• C) might indicate that taxes are too high.
• D) might suggest a mistaken value of explicit costs.

---

Definitions:

Evolutionary Theory

Evolutionary Theory is a scientific theory that explains the diversity of life on Earth, positing that species change over time through processes such as natural selection and genetic mutation.

Genetic Evolution

The process by which the inherited features of an organism change over generations through mechanisms such as mutation, natural selection, and genetic drift, leading to biodiversity.

Societal Change

The significant alteration of social structures and cultural patterns over time, often resulting from social movements, technological advancements, or major events.

Sociological Approaches

Different methods and perspectives used by sociologists to analyze and interpret social behaviors, structures, and patterns.