To Protect Economic Profits

question 3

Multiple Choice

To protect economic profits

• A)a firm should try to acquire a barrier to entry.
• B)a firm should limit substitutes.
• C)a firm should have a patent if possible.
• D)all of these choices.

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Definitions:

Activity Range

Activity range refers to the span of levels of operational activity that a business can perform within, while maintaining efficiency and effectiveness in its processes or production.

Production Level

The quantity of goods or services produced during a specified time period.

Manufacturing Overhead

All indirect costs associated with the production process, like utilities, maintenance, and factory management salaries, excluding direct materials and labor.

Spending Variance

The difference between the actual amount of money spent and the budgeted amount for a particular period or item.