If a Company Reports Revenues of $17,000 and Expenses of $12,000,then

question 99

True/False

If a company reports revenues of $17,000 and expenses of $12,000,then net income equals $5,000.

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Definitions:

Elastic

Describes a situation where the quantity demanded or supplied of a good or service is sensitive to changes in price.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.

Price Taker

An entity that accepts market prices as given, without having influence to change the price by its own actions.

Buyer

An individual or entity that purchases goods or services for personal use or ownership rather than for reselling or producing other goods and services.