Economic Profits in an Industry Suggest the Industry

question 144

Multiple Choice

Economic profits in an industry suggest the industry

• A) can earn more profits by increasing product price.
• B) should be larger to better satisfy consumers' desire for the product.
• C) has excess production capacity.
• D) is the size that consumers want it to be.

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Definitions:

Ordinary Gains

Ordinary gains refer to earnings from the sale of assets or property that are not classified under capital gains and are subject to the taxpayer's normal income tax rate.

Accounts Receivable

Money owed to a business by its customers for goods or services delivered but not yet paid for.

Form 1099-B

This is a tax form used to report proceeds from broker and barter exchange transactions to the IRS, including sales of stocks, bonds, and other securities.

Schedule D

A form used with individual tax returns in the United States to report capital gains and losses from investments.