Scenario 9.2 Consider a Publicly Held Firm (One Whose Stock Shares Are

Multiple Choice

Scenario 9.2
Consider a publicly held firm (one whose stock shares are traded on the stock exchange) that earned revenue worth $350 million and incurred land, labor, and debt costs worth $320 million. The stockholders who have invested a total of $100 million in this firm could have earned 10 percent return on other comparable investments.
-When a firm incurs negative economic profit, it should:

A) hire more laborers to make the business activity profitable.
B) transfer the resources from its current use to other alternative uses.
C) purchase additional raw materials to produce more output.
D) transfer additional resources from other alternative uses to the current activity.
E) continue to operate with the same resources.