Which of the Following Is Most Vital If the Firms

question 139

Multiple Choice

Which of the following is most vital if the firms in an industry are going to earn economic profit in the long run?

• A) an inelastic demand for the product produced by the firms
• B) an elastic demand for the product produced by the firms
• C) managerial efficiency
• D) high barriers to entry into the industry

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Definitions:

State Tax Bracket

The division of income ranges that are used to determine the tax rate applicable to an individual's or entity's income within a particular state.

After-tax Return

The profit generated from an investment after all applicable taxes have been paid.

Tax Exemption

A monetary exemption which reduces taxable income, allowing certain income or transactions to be legally exempt from taxation.

Income Tax Rate

The percentage at which an individual or corporation is taxed on their income, which can vary based on income level and jurisdiction.