Explain How Firms That Each Produce as Efficiently as They

question 16

Essay

Explain how firms that each produce as efficiently as they can may not be equally productive.

---

Definitions:

Net Income

The amount of money a company earns after deducting all its expenses, taxes, and costs from its total revenue.

Capital Balances

The amount of money that owners have invested in a company plus any retained earnings or minus any losses.

Net Income

Net Income is the profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.

Profit And Loss Ratio

An agreed upon ratio used to divide earnings or losses of a partnership.