How Long Must a Capital Asset Be Held to Qualify

question 91

Multiple Choice

How long must a capital asset be held to qualify for long-term treatment?

• A)6 months
• B)one year
• C)one year and one day
• D)same trade date one year from purchase

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Definitions:

Monopolistically Competitive

A market structure where many firms sell products that are similar but not identical, allowing for competition on factors other than price.

Profit-Maximizing Level

The point at which a firm achieves the highest possible profit, where marginal revenue equals marginal cost.

Profit-Maximizing Price

The profit-maximizing price is the optimal price a firm can set for its product or service to achieve the highest possible profit, considering the balance between price, demand, and production costs.

Fixed Costs

Expenses that do not change in proportion to the activity of a business, such as rent, salaries, and insurance.