If a Firm Fails to Provide Investors with at Least

question 122

Multiple Choice

If a firm fails to provide investors with at least a normal rate of return

• A)it will not be able to remain in business in the long run.
• B)it will not be able to remain in business in the short run.
• C)it will shut down in the short run but will be able to remain in business in the long run.
• D)it will have a positive economic profit but a negative accounting profit.

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Definitions:

Strategy

A plan of action designed to achieve a long-term or overall aim.

Consistent

Marked by harmony, regularity, or steady continuity, free from variation or contradiction.

Oligopoly Environment

A market structure characterized by a small number of firms that dominate the market, leading to limited competition.

Aircraft Manufacturers

Companies specializing in the design, manufacture, and/or assembly of airplanes and aircraft-related systems and parts.