When Economic Profits Exist in the Market for a Particular

question 98

Multiple Choice

When economic profits exist in the market for a particular product,this is a signal to producers that

• A)Consumers would like more scarce resources devoted to the production of this product.
• B)The market is oversupplied with this product.
• C)The best mix of goods and services is being produced with society's scarce resources.
• D)Price is at the minimum of the ATC curve.

Realize the effects of LIFO liquidation on financial statements and its reporting requirements.

Analyze how inventory accounting methods affect financial ratios and statements, and the adjustments needed for fair comparison.

Appreciate the regulatory requirements for inventory accounting disclosure under GAAP and SEC rules.

Understand the implications of using LIFO and FIFO accounting methods on inventory management and financial statements.

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Definitions:

American Dollar

The official currency of the United States, also known as the USD or US Dollar.

Members

Individuals who are part of an organization, group, or body, contributing to and benefitting from its activities and objectives.

FDIC

Stands for the Federal Deposit Insurance Corporation, a U.S. government agency that insures deposits in banks and thrift institutions for at least $250,000 per depositor, per insured bank.

Savings And Loan Associations

Specialized financial bodies that deal with accepting deposits for saving purposes and issuing various loans, especially for mortgages.