Goods or Services That Can Be Produced Only by Using

question 345

True/False

Goods or services that can be produced only by using unique or rare productive resources tend to have a low elasticity of supply.

---

Definitions:

Net Operating Income

Net Operating Income is the total profit of a company after operating expenses are subtracted from operating revenues, excluding non-operating costs.

Residual Income

Income that remains after all operating expenses and costs of capital have been deducted from net operating income.

Profit Centre

A segment of a business that is responsible for both generating revenue and controlling costs, thereby directly influencing its own profitability.

Residual Income

Earnings generated beyond the minimum rate of return expected by a company or its investors, often used as a performance measure.