Which of the Following Explains Most Clearly Why Business Owners

question 37

Multiple Choice

Which of the following explains most clearly why business owners have a strong incentive to strive for operational efficiency?

• A) They recognize that operational efficiency promotes the public interest.
• B) As residual claimants, owners will receive a higher income from increased efficiency.
• C) The owners will be able to keep production costs low by providing free managerial services to the firm.
• D) The owners will be able to gain by paying employees below market wages, which will improve the overall efficiency of the economy.

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Definitions:

Turning Point

A moment or event that marks a significant change or development in a situation or in someone's life.

Adults' Lives

The stage in human development characterized by full growth and maturity in both physical and psychological aspects, encompassing the experiences and responsibilities of adult individuals.

Concrete-Operational Stage

A stage in Piaget's theory of cognitive development, typically occurring between ages 7 and 11, where children gain the ability to think logically about concrete events.

Egocentrism

A cognitive trait where an individual is unable to understand that other people’s perspectives and views can be different from their own.