Ordinarily, Members of Manager-Managed LLCs Have Duties to the LLC

question 66

True/False

Ordinarily, members of manager-managed LLCs have duties to the LLC and its members by reason of being members.

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Definitions:

Profit-Maximizing Output

The quantity of output at which a firm achieves the maximum possible profit, determined where marginal revenue equals marginal cost.

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs.

Perfectly Competitive Firm

A company that operates in a market where there are many buyers and sellers, no barriers to entry or exit, and the firm sells a homogeneous product.

MR

The extra revenue that a firm gains when it sells an additional unit of output, essentially another term for marginal revenue.