Which of the Following Factors Is Fixed in the Long

question 466

Multiple Choice

Which of the following factors is fixed in the long run?

• A) capital
• B) land
• C) entrepreneurship
• D) none of the above because all factors are variable in the long run

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Definitions:

Creditors

Individuals or institutions to which money is owed by a person or entity.

Profit Margin

Measures the percentage of each dollar of sales that results in net income; computed by dividing net income by net sales.

Gross Profit

The difference between sales revenue and the cost of goods sold, indicating how efficiently a company is producing or sourcing its products.

Net Income

The amount of money a company earns after subtracting all its expenses from its total revenues.