Thomas Edison Once Said That He Began Making Real Profit

question 213

Multiple Choice

Thomas Edison once said that he began making real profit on light bulbs when he dumped his surplus on the European market at less than the "cost of production." From this we can deduce Edison

• A)did not want to maximize profit.
• B)understood the difference between marginal and average cost.
• C)had a different definition of the term "profit."
• D)did not understand the difference between fixed and variable cost.

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Definitions:

Average Rate

Typically refers to the mean value of a variable rate over a specified period, often used in financial contexts to calculate average interest rates.

Salvage Value

The estimated residual value of an asset at the end of its useful life.

Total Income

The sum of all revenue and gains a company or individual earns within a specific period, including sales, interest, and dividends.

Net Cash Flows

The difference between a company's cash inflows and outflows over a specific period.