Returns at Levels Higher Than the Entrepreneur Could Make Working

question 81

Multiple Choice

Returns at levels higher than the entrepreneur could make working for others are known as:

• A) substitution profits.
• B) marginal profits.
• C) supplemental profits.
• D) success profits.

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Definitions:

Annual Rate of Return

The percentage of return on an investment over a one-year period, including interest, dividends, and capital gains.

Net Income

A company's total profit calculated by subtracting total expenses from total revenue.

Product Line

A series of related products offered by a company that serve similar functions or are targeted at a similar customer base.

Fixed Costs

Expenses that do not change with changes in the volume of production or sales, such as rent or salaries.