To Be Successful It Is Recommended That You Take

question 39

Multiple Choice

To be successful it is recommended that you take:

• A) moderate risks.
• B) high risks.
• C) low risks
• D) almost no risks.

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Definitions:

Zero-Profit Equilibrium

A situation in competitive markets wherein, due to free entry and exit, firms only earn a normal profit, which is their lowest level of profit necessary to keep them in business.

Industry Expands

The process of a sector growing in size through increased production, possibly due to higher demand or technological advancements.

AVC

Average Variable Cost, which is the variable cost per unit of output, calculated by dividing total variable costs by the quantity of output.

ATC

Average Total Costs, which is the sum of all production costs (fixed and variable) divided by the quantity of output produced, detailing the average cost per unit of output.