There Are Many Reasons Why a Firm Can Earn Above-Normal

question 103

Multiple Choice

There are many reasons why a firm can earn above-normal profits.These reasons include all of the following except:

• A)access to superior labor or managerial talents
• B)superior access to financial resources at lower costs
• C)patent control of superior product designs
• D)ability of new firms to acquire necessary factors of production

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Definitions:

Unlimited Personal Liability

A legal structure in certain business types where owners are personally responsible for all of the business's debts, without any limit on the amount for which they can be liable.

Corporate Form

A legal structure for businesses that is recognized as a separate entity from its owners, providing limited liability protection.

Limited Liability

This is a legal structure that protects business owners' personal assets from being used to pay off business debts and liabilities.

Financial Information

Data related to the financial status of a company, including income statements, balance sheets, and cash flow statements.