In the Long Run,competitive Firms MUST Be Profit Maximizers Because

question 75

Multiple Choice

In the long run,competitive firms MUST be profit maximizers because if they do not maximize profits,

• A) they will not survive.
• B) they will not be price takers.
• C) they will attract entry.
• D) the profits that they do earn will only cover variable costs.

Understand the implications of mental incapacity and intoxication on contract formation and enforcement.

Recognize the legal differences in handling contracts involving emancipated minors versus those who are not.

Understand the importance of express and implied ratification in validating a contract.

Grasp the legal responsibilities and limitations of guardians in managing contracts for their wards.

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Definitions:

Loss

A financial condition in which expenses exceed revenues, resulting in a negative balance.

Accounting Books

Official ledgers or books that record all financial transactions of a business, forming the basis for the company's financial statements.

Accounting Period

A specific time span during which financial activities are recorded and compiled into financial statements, usually a year or a quarter.

Greater Than

Greater Than is a mathematical symbol (>) used to indicate that the value on the left side is larger than the value on the right side.