Which of the Following Statements Is TRUE

question 127

Multiple Choice

Which of the following statements is TRUE?

• A) Even entrepreneurs cannot earn above-normal profits in a competitive marketplace.
• B) In a competitive market, above-normal profits will be eliminated by entry of new firms.
• C) In a competitive market, below-normal profits are common.
• D) The most profitable firms will always have the lowest opportunity costs.

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Definitions:

Cultural Norms

Shared expectations and rules that guide behavior of people within social groups or societies.

Negotiation

Negotiation is a process in which parties with differing needs or viewpoints communicate to reach a mutually acceptable agreement or solution.

Cross-cultural

Cross-cultural in the context of negotiations refers to the considerations, challenges, and adaptations required when negotiating parties have different cultural backgrounds, affecting communication, norms, and expectations.

Art and Science

The combination of creativity, intuition, and personal skills (art) with systematic analysis and methodology (science).