If a Firm Is Earning a Negative Economic Profit,it Means

question 22

Multiple Choice

If a firm is earning a negative economic profit,it means that:

• A)the resources should be invested in other business opportunities.
• B)more profits could be earned with the same resources in another industry.
• C)the opportunity cost is larger than what the firm is earning.
• D)All of these are true.

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Definitions:

Pension Plans

Financial programs that provide income during retirement, funded through contributions from employers, employees, or both.

Corporate Scorekeeping

The practice of monitoring and recording the financial and operational performance indicators of a company.

Organizational Strategy

A plan of action designed by management to achieve specific long-term goals and objectives, shaping the company's direction and scope.

Benchmarking Partners

Organizations a company compares itself to for the purpose of measuring and improving performance, quality, or processes.