How Does an Open System Contrast with a Closed System

question 8

Multiple Choice

How does an open system contrast with a closed system?

• A)An open system is open to scientific scrutiny, while a closed system is not.
• B)An open system is able to convert energy from one form to another, while a closed system is not able to do so.
• C)An open system is prone to collapse, while a closed system is typically more sustainable in the long term.
• D)An open system exchanges energy and/or materials with its surroundings, while a closed system does not.

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Definitions:

Profit-Maximizing Level

The output level at which a firm achieves the highest possible profit, where marginal cost equals marginal revenue.

Competitive Firm

A business entity in a market where it must take the prevailing market price as given, due to its inability to influence prices through its own actions.

Market Price

The present cost at which a product or service is available for purchase or sale in the market.

Economic Profit

The difference between a firm's total revenue and its opportunity costs, including both explicit and implicit costs.