From Society's Point of View, the Economic Function of Profits

question 35

Multiple Choice

From society's point of view, the economic function of profits and losses is to

• A)promote the equal distribution of real assets and wealth.
• B)achieve full employment and price level stability.
• C)contribute to a more equal distribution of income.
• D)reallocate resources from less-desired to more-desired uses.

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Definitions:

Oligopolistic Firms

Companies that are part of an oligopoly, a market structure with a small number of large firms dominating the industry, often leading to strategic behavior.

High Profits

Increased financial gains resulting from operating activities, typically seen as significantly above the average or expected level.

Market Structure Types

Various classifications of market systems based on the number of firms in the market, the nature of the product, and the degree of competition, including perfect competition, monopoly, oligopoly, and monopolistic competition.

Compete On Quality

a business strategy where companies focus on offering higher quality products or services instead of competing on prices.