In the Long Run, for a Business to Remain in Operation

question 125

True/False

In the long run, for a business to remain in operation, the selling price of a product should normally cover all costs and expenses and provide a reasonable income.

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Definitions:

Labor Productivity

The measure of economic performance that compares the amount of goods and services produced with the number of labor hours used to produce them.

Per-Worker Production Function

A mathematical function that represents output per worker as a function of capital per worker or other inputs.

Labor Productivity

This term refers to the amount of goods and services produced per hour worked, indicating the efficiency of labor in the economy.

Per-Worker Production Function

A measure of the relationship between the average output produced by each worker and the inputs used in production.