Question

from a profit perspective, it makes sense for firms to disperse their productive activities to those countries where they can be performed most efficiently.

Answer 1

The statement is correct. Profitably, it makes sense for firms to shift their productive activities to countries where they can be performed more efficiently.

What is Profit perspective?

• The Profits Perspective is an economic viewpoint that focuses on the financial flows that determine total business profits. It is based on Jerome Levy's profits equation, which he discovered in 1908.

• It is also linked to the work of Hyman Minsky, a twentieth-century economist. The distinction between the revenue obtained from the sale of an outcome and the costs of all inputs used, as well as any prospect costs, is the financial profit or loss.

• Economic profit is calculated by subtracting opportunity costs and explicit costs from earnings earned.

• Economic profit is important because it aids in determining a company's profitability and financial performance.

• It demonstrates whether a specific business can cover its expenses while also generating revenue for stakeholders.

To learn more about Profit, refer to:

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