Which of the Following Conditions Is Most Essential If a Firm

question 99

Multiple Choice

Which of the following conditions is most essential if a firm is going to earn long-run economic profits?

• A) an inelastic market demand for the product
• B) a small number of firms, even though competitors are free to enter the industry
• C) a differentiated product
• D) restrictions that limit the entry of potential competitors into the industry

Understand the role of different Internet applications in day-to-day digital communication.

Clarify the concept and advantages of crowdsourcing and telecommuting.

Recognize the role of technology in education and workplace communication.

Discuss the implications of data privacy laws and internet policies globally.

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Definitions:

Average Cost Method

An inventory costing method that assigns the average cost of all similar items in inventory to the cost of goods sold and to ending inventory.

Cost Of Goods Sold

Represents the direct costs attributable to the production of the goods sold in a company, including materials and labor.

Ending Inventory

The total value of goods available for sale at the end of an accounting period.

Quantity Discount

A reduction in price given by a seller to a buyer for purchasing a larger quantity.