If a firm can earn ________,the firm is creating value for its shareholders.
A) diminishing returns
B) above-average returns
C) marginal returns
D) market-average returns

Question

Quizplus · Accepted Answer

Above-average returns indicate that the firm is earning more than the average return of its competitors or the overall market, suggesting that it is generating value for its shareholders by surpassing the competition. Diminishing returns, marginal returns, and market-average returns do not necessarily indicate that the firm is creating value for its shareholders.

If a Firm Can Earn ________,The Firm Is Creating Value