If P > AC in a Given Industry, Then

question 61

Multiple Choice

If P > AC in a given industry, then:

• A) there are too many resources in that industry.
• B) there are too few resources in that industry.
• C) the industry has the optimal amount of resources.
• D) it is not possible to know whether the industry has the optimal amount of resources.

---

Definitions:

Estimated Life

The anticipated duration for which an asset is expected to be functional and economically viable, dictating its depreciation schedule.

Group Depreciation

A depreciation strategy applied to a collection of assets that have similar characteristics and useful lives, simplifying the process of calculating depreciation expenses.

Accumulated Depreciation

This refers to the total amount of a company's asset cost that has been expensed through depreciation over the asset's life, reducing its initial cost on the balance sheet.

Assets Sold

Items or properties a company has disposed of, either by selling, trading, or other means of transfer.