Which of the Following Industries Is Most Likely to Exhibit

question 321

Multiple Choice

Which of the following industries is most likely to exhibit the characteristic of free entry?

• A)electricity
• B)satellite radio
• C)mineral mining
• D)tennis shoes

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Definitions:

Company's Profits

The financial gain realized when the revenues generated from business activities exceed the expenses, costs, and taxes needed to sustain the activities.

Interest

The cost of borrowing money or the return earned on an investment, typically expressed as a percentage.

Accounting Period

A specific time period at the end of which an organization prepares financial statements.

Income Statement

A financial statement that shows a company’s revenues and expenses over a specific period, illustrating how the revenues are transformed into net income or loss.