Which of the Following Is an Accurate Argument in Support

question 145

Multiple Choice

Which of the following is an accurate argument in support of market power?

• A)It restricts output and raises prices,contributing to more efficient use of resources.
• B)It contributes to efficient production when there are diseconomies of scale.
• C)It provides the economic profit necessary for survival and efficient production in a market.
• D)It provides greater ability to fund research and development.

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Definitions:

Recording

The process of capturing all financial transactions of a company for inclusion in its accounting records.

Posting

The process of recording transactions in the ledger accounts as part of the accounting cycle.

Debit

An accounting entry that represents an increase in assets or expenses, or a decrease in liabilities or equity, recorded on the left side of the accounting ledger.

Credit

The provision of goods, services, or money with the expectation of future payment, or an entry in accounting that increases liabilities and decreases assets.