Which of the following explains most clearly why business owners have a strong incentive to strive for operational efficiency?
a. They recognize that operational efficiency promotes the public interest.
b. As residual claimants, owners will receive a higher income from increased efficiency.
c. The owners will be able to keep production costs low by providing free managerial services to the firm.
d. The owners will be able to gain by paying employees below market wages, which will improve the overall efficiency of the economy.
B
You might also like to view...
By changing the reserve requirement the Fed can change the level of bank reserves and the lending capacity of the banking system.
a. true b. false
For a perfectly competitive firm, which of the following is NOT true?
A) The average revenue curve, the demand and the marginal revenue curves are identical. B) The total revenue curve begins at the origin and slopes upward as output increases. C) The slope of the total revenue curve is equal to the product price. D) The total revenue curve is horizontal.