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Suppose There Is an Improvement in the Technology of Producing

question 21

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Suppose there is an improvement in the technology of producing TVs and the production of TVs becomes an increasingly competitive industry. Assuming that the TV industry is initially in equilibrium, the long-run effect of this improvement is:


Definitions:

Operating Policies

Guidelines, rules, and procedures established by an organization to govern its operations and decision-making processes.

Asset Revaluation Reserve

An equity account that records increases in the carrying amount of a company's assets, reflecting changes in value over time.

General Reserve

A reserve fund set aside out of profits for the purpose of strengthening the company's financial position and fulfilling future needs or contingencies.

Acquisition Excess

The amount by which the purchase price of an acquired asset or business exceeds its fair value, often recognized as goodwill.

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