If a Competitive Industry Is Neither Expanding nor Contracting, We

question 287

Multiple Choice

If a competitive industry is neither expanding nor contracting, we would expect

• A)total revenue to be zero.
• B)economic profits to be zero.
• C)total opportunity cost to be zero.
• D)more resources to flow to that industry.

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Definitions:

Cost Over Budget

The amount by which actual spending exceeds the planned or budgeted amount.

Sales Exceeding Budget

This indicates a financial scenario where actual sales revenue surpasses the projected figures in the budget, often viewed positively as it suggests higher profitability.

Maintenance Department

A functional area within an organization responsible for the continuous upkeep and repair of equipment, buildings, and facilities to ensure smooth and efficient operations.

Manufacturing Company

A business that produces finished goods from raw materials through the use of labor and machinery in a systematic process.