Which of the following explains why business owners have a strong incentive to strive for operational efficiency?
A) they recognize that operational efficiency promotes the public interest.
B) since the owners are residual income claimants, increased efficiency will mean a higher income for the owners.
C) if production is not conducted efficiently, the firm will ship jobs and capital out of the domestic market in order to be able to compete effectively.
D) Increased operational efficiency allows the firm to receive government tax breaks.
Correct Answer:
Verified
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