Suppose a Firm Is Collecting $1,999 in Total Revenues and the Total

question 100

Multiple Choice

Suppose a firm is collecting $1,999 in total revenues and the total cost of its fixed factors of production falls from $500 to $400.One can speculate that the firm will:

• A)expand output.
• B)lower price.
• C)earn greater profits or smaller losses.
• D)contract output.

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Definitions:

Net Profit Margin

A financial metric that shows the percentage of a company's revenue that remains as net income after operating expenses, interest, taxes, and preferred stock dividends have been deducted.

Management Efficiency

A measure of how effectively a business or organization's management team utilizes resources to achieve its goals.

Sales Dollar

A term representing the total dollar amount generated from sales transactions within a specific period.

Return on Assets

A financial ratio that measures the profitability of a company in relation to its total assets, indicating how efficiently the company is using its assets to generate profit.