Which of the Following Was NOT Used by Firms in the Soft

question 60

Multiple Choice

Which of the following was NOT used by firms in the soft drink,automobile,and newspaper industries shown in The Business Firm video as a way to reduce costs in a competitive environment?

• A) substituting inputs
• B) producing their products in a foreign country
• C) adopting new technology
• D) achieving economies of scale
• E) colluding with one another

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Definitions:

Net Loss

The amount by which total expenses exceed total revenues, indicating that a business spent more than it earned during a given period.

Net Loss

This occurs when a company's expenses exceed its revenues during a specific period of time, leading to a negative net income.

Ending Capital

The amount of capital a company or individual has at the end of a financial period, after all transactions have been accounted for.

Income Summary

An account in the general ledger used to transfer the balances of temporary accounts to permanent accounts at the end of an accounting period.