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A Firm Pays a Monthly Lease of $10,000 and Generates

Question 109

Multiple Choice

A firm pays a monthly lease of $10,000 and generates $8,000 of revenue a month. Which of the following is TRUE?


A) Firms will enter the industry.
B) This firm will exit the industry in the long run.
C) The recoverable costs are less than the difference between revenues and variable costs.
D) The recoverable costs are less than operating profit.

Correct Answer:

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