Which of the Following Is Least Likely a Characteristic of Profit

question 15

Multiple Choice

Which of the following is least likely a characteristic of profit persistence in an industry?

• A)Entry barriers exist
• B)Economic profits should quickly converge to zero
• C)Barriers to imitation exist
• D)Firms earning above-average profits today should continue to do so in the future
• E)Low profit firms today should remain low-profit firms in the future

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Definitions:

Relative Value Units

A measure used in the United States to value the services provided by physicians and other healthcare providers, using three components: the physician's work, practice expenses, and malpractice insurance costs.

Resource-based Relative Value Scale (RBRVS)

A system used to determine how much money medical providers should be paid, based on the resource costs needed to perform various medical services.

Service Area

The geographic zone where a business, institution, or service provider offers its services or goods.

Insurance Carrier

A company that provides insurance coverage for risks to its policyholders.