Assume a Firm Is Run as a Zero-Profit Enterprise

question 6

Multiple Choice

Assume a firm is run as a zero-profit enterprise.Which of the following would be true?

• A) There is a higher probability that wage reductions would outweigh layoffs.
• B) Those in charge would not act any different than regular owners, there would still be layoffs.
• C) Those not in charge would remain risk neutral.
• D) Wage reductions would be lower than they would be if the firm was run for profit.

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Definitions:

Meal Part

A segment or course of a meal, such as an appetizer, entrée, or dessert.

Vegetarian

A diet abstaining from the consumption of meat and often other animal products, for health, ethical, or environmental reasons.

Side Dish

A food item that accompanies the main course at a meal, often vegetables, rice, or salads.

Hair Color

The pigmentation of hair follicles due to two types of melanin: eumelanin and pheomelanin.