Which of the Following Items Is Considered to Be a Cash

question 168

Multiple Choice

Which of the following items is considered to be a cash equivalent?

• A) An investment in a U. S. bond due in two years
• B) A one-year certificate of deposit due in six weeks
• C) A one-month Treasury bill due in two weeks
• D) A promissory note due from a customer in 7 months

Comprehend the implications of the prisoners' dilemma in repeated games and the role of strategies like tit-for-tat.

Identify the significance of antitrust laws, such as the Sherman Antitrust Act, in regulating trade and competition.

Illustrate the concepts of Nash Equilibrium and dominant strategies in game theory contexts.

Explain the stability issues of monopoly output in cartels due to factors akin to the prisoners' dilemma.

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Definitions:

Contribution Margin

The difference between sales revenue and variable costs, showing how much revenue contributes towards covering fixed costs and generating profit.

Absorption Costing

A method in accounting where all costs of manufacturing are absorbed by the units produced.

Variable Costing

A costing method that includes only variable production costs (direct labor, materials, and overhead) in product costs, excluding fixed costs.

Fixed Overhead

Denotes the regular, recurring costs associated with running a business that do not fluctuate with production volume, such as rent, salaries, and utilities.