A Firm Will Only Earn Normal Profit in the Long

question 189

Multiple Choice

A firm will only earn normal profit in the long run

• A)if firms can freely enter or leave the market
• B)if firms do not try to maximize profit
• C)only if the industry is perfectly competitive
• D)whenever products are not differentiated
• E)if barriers to entry exist

Understand the relationship between present value factor (PVF) and future value factor (FVF) and how they are calculated.

Grasp the concept of opportunity cost and its relevance in financial decisions.

Identify and apply the principle of time value of money in various financial contexts.

Describe how interest rates affect present and future values.

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Definitions:

Ovum

The female reproductive cell or egg, which, when fertilized by a sperm, can develop into an embryo.

Blastocyst

A stage of early development in mammals that consists of a spherical outer layer of cells, enclosing a fluid-filled cavity and a cluster of cells.

Embryo

An early stage of development for multicellular organisms, in humans it refers to the period from fertilization until the eighth week.

Uterus

A female reproductive organ where a fetus develops during pregnancy.