If a Firm Fails to Provide Investors with at Least

question 122

Multiple Choice

If a firm fails to provide investors with at least a normal rate of return

• A)it will not be able to remain in business in the long run.
• B)it will not be able to remain in business in the short run.
• C)it will shut down in the short run but will be able to remain in business in the long run.
• D)it will have a positive economic profit but a negative accounting profit.

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Definitions:

Consumers

Individuals or entities that use goods or services produced within an economy.

Producers

Individuals or companies that create goods or services for sale or exchange.

Excise Tax

A tax imposed on specific goods, services, or transactions, often aimed at discouraging their use or raising government revenue.

Consumers

Individuals or entities that purchase goods or services for personal use and not for manufacture or resale.