The return on assets ratio is calculated by dividing operating income by average total assets.

___ offer space, shared services, and advice to help get small businesses started.

A) Business councillors
B) Business incubators
C) Succession plans
D) Social advisors
E) Internet entrepreneurships

Medicare and Medicaid set their payment rates for medical services above marginal cost, but below average total cost. One major consequence of doing this is that hospitals and other providers are then

A) reducing the amount of health care services they provide.
B) passing the uncovered costs on to patients with private health insurance.
C) denying services to many Medicare and Medicaid patients.
D) filing for bankruptcy regularly.

New technology usually involves ________, which is using equipment and information processing to perform activities that had been performed by people.

A) downsizing
B) outsourcing
C) offshoring
D) automation
E) diversification

The net income or net loss is calculated on the:

A) balance sheet.
B) statement of Owner's Equity.
C) income statement.
D) None of these

Because of higher gasoline prices, firms using gasoline intensively in the production or distribution of their goods have experienced

A) an upward shift in their MC, AVC, and ATC curves.
B) an upward shift in their AFC, AVC, and ATC curves.
C) a downward shift in their MC, AFC, and AVC curves.
D) greater economies of scale.