A) is correct as profits are the amount that remains after paying all necessary costs and expenses (factors of production). B) is correct as profits are the rewards paid to entrepreneurs for taking risks and organizing factors of production to produce goods and services. C) is also correct as the profit margins for many businesses can be quite low, especially in competitive markets.

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Profits

Question 191

Multiple Choice

Profits

A) are what remains from the selling price after factors have been paid.
B) accrue to entrepreneurs.
C) are lower than most people think.
D) All of the above are correct.

Correct Answer: