Which of the Following Variables Is Left Out of the Simple

question 136

Multiple Choice

Which of the following variables is left out of the simple economic model of the firm?

• A) the marginal cost of production
• B) consumer tastes and preferences
• C) the fact that many firms actually earn profits
• D) the entrepreneurial decision-making process

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Definitions:

Instrument

A formal legal document that signifies a monetary value or evidences a transaction involving financial rights or property.

Without Recourse

Refers to an agreement where the seller is not responsible for any issues that arise after the sale is completed, commonly used in bill of exchange and note transactions.

Endorse

To formally support, approve, or sign a document, often to authenticate its validity or to transfer rights or ownership.

Debt

A financial obligation owed by one party (the debtor) to another (the creditor), typically involving borrowed money that is expected to be paid back with interest.