Profits
A) are a cost of doing business because they are payments to others.
B) are not a cost of doing business because they are owed to resource owners.
C) are not a cost of doing business because they are often zero or negative.
D) are a cost of doing business because entrepreneurs would not incur the risk of starting a business if they didn't expect to earn profits.
D
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Economies of scale will lead to only one firm in the industry because
A) by increasing output a firm is able to lower the cost per unit and charge lower prices driving smaller firms out of business. B) one firm has an average cost curve, which has shifted below the average cost curves of its competitors. C) there are governmental entry restrictions. D) of government licensing.
Which of the following would an economist classify as capital?
A. A public corporation's employees B. A share of stock C. A computer used by an accountant D. A deposit of silver