If Total Revenue Is Less Than Total Costs, Then

question 111

Multiple Choice

If total revenue is less than total costs, then

• A)economic profits are positive.
• B)economic profits are zero.
• C)economic profits are negative.
• D)a firm breaks even.
• E)profits can be positive or negative, depending on other factors.

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Definitions:

Fixed Exchange-rate System

A currency value regime where a country's currency is pegged at a set value to another currency, a basket of currencies, or a commodity like gold.

Foreign Exchange Market

A global decentralized or over-the-counter market for trading currencies, facilitating international trade and investment.

Peg

Fixing the exchange rate of a currency by linking it to another currency or basket of currencies.

Fixed Exchange Rates

A currency system where the value of a country's currency is pegged to another currency, a basket of currencies, or a commodity like gold, minimizing fluctuations in exchange rates.