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Thomas and William Each Start a New Firm with Identical

Question 144

Multiple Choice

Thomas and William each start a new firm with identical sets of resources. Two years later, Thomas's firm has earned $1 million in profits, while William's firm has earned $300,000 in profits. Thomas


A) must have had more land, labor, or capital than William.
B) appears to have a higher level of entrepreneurial ability than William.
C) must have produced a higher quantity than William.
D) must have used unethical practices to take advantage of William.

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