Which of the following would be a method of improving a firm\'seconomic profit?
ID: 2661808 • Letter: W
Question
Which of the following would be a method of improving a firm'seconomic profit? Assume all else equal. a. Identify and improve operating efficiencies. b. Increase sales. c. Dispose of underutilized assets. d. Recapitalize the firm to reduce its cost of capital. e. All of the above Which of the following would be a method of improving a firm'seconomic profit? Assume all else equal. a. Identify and improve operating efficiencies. b. Increase sales. c. Dispose of underutilized assets. d. Recapitalize the firm to reduce its cost of capital. e. All of the aboveExplanation / Answer
b) increase sales
When total revenue exceeds both explicit and implicit costs, thefirm earns economic profit.
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