Activist Capitalists Who Seek Out or Create Earnings Opportunities and Assume

question 40

Multiple Choice

Activist capitalists who seek out or create earnings opportunities and assume risk, for which they receive profits, are called

• A)rent seekers.
• B)entrepreneurs.
• C)muckrakers.
• D)marginalists.

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Definitions:

Differential Income

The difference in income between two alternatives, used in decision-making processes to determine the best option.

Alternative Use

Refers to the potential other uses or applications of an asset or resource outside its current employment.

Variable Cost

Costs that vary directly with the level of production or sales volume.

Total Costs

The complete aggregate of expenses incurred by a business, encompassing both fixed and variable costs.