Which of the Following Statements Is False

question 13

Multiple Choice

Which of the following statements is false?

• A) Perfect substitutes are associated with linear isoquants.
• B) Perfect complements are associated with right-angled isoquants.
• C) The elasticity of substitution can be positive or negative.
• D) The more two factors are substitutes in the firm's production function, the greater is the elasticity of substitution.
• E) Perfect substitutes do not need to be employed in a one-to-one ratio by the firm.

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Definitions:

Merchandising Company

A business entity that purchases finished goods and resells them to consumers to earn a profit without altering the physical form of the goods.

Perpetual Inventory System

A continuous inventory system is a technique for managing stock that immediately logs the transaction of inventory sales or purchases using computerized point-of-sale systems and enterprise asset management programs.

Purchasing Merchandise Inventory

The process of acquiring goods for resale, including the selection, ordering, and receipt of merchandise.

Recording Process

The systematic method of capturing all relevant financial transactions of a business for accounting and reporting purposes.